Agency on the spot over irregular use of billions

Kenya Rural Roads Authority (KERRA) is on the spot over irregular road works expenditure amounting to billions of shillings.

The report from the Auditor General Nancy Gathungu for the financial year 2022/2023 reveals how some of the projects started by the road’s agency have stalled while in others payments were either made before they were completed or contracts were amended halfway into the project.

Gathungu (pictured) has also fingered the institution for presenting to the audit team a budget that lacked details and itemization per component which hindered the assessment of financial performance and resource allocation within the authority.

 She also cited delays in disbursement of Government funding, delays in project implementation as well as failure to settle pending bills as challenges that led to slow conclusion of projects.

Reads the report: “This was contrary to International Public Sector Accounting Standards (IPSAS) which provides guidance on how budgetary information should be presented and disclosed, including the itemisation of budgetary amounts.”

Among the projects in question include upgrading to bitumen standard of Gilgil-Machinery Road, improvement and maintenance of central Kenya rural roads, improvement of rural roads and market infrastructure in western region, construction of Chuka-Kaanwa road, construction of Kaanwa – Wakathite road and construction of Wakathite – Kareni Road as well as rehabilitation of other projects in various parts of the country.

With regards to rehabilitation of road works in various parts of the country whose expenditure amounts to Sh85.2 million that was paid to three contractors, Gathungu revealed that the payments were made before the contractor furnished the authority with performance guarantee and before the submitted approval of programme of works was approved by the supervisor.

This, she said, was contrary to Article 46.3 (b) and Article 46.3 (e) of the contract which states that no-financing should be granted until performance guarantee is