KSH 3.16B Lost? No Value for Money in Stalled Military Projects, Audit Reveals
Three Kenya Defence Forces (KDF) projects worth Ksh21.9 billion, initiated during the final months of former President Uhuru Kenyatta’s tenure, have stalled due to a lack of funding.
A report tabled in Parliament for the financial year ending June 2024 reveals that two of the projects were abandoned at just 20 percent completion, while the third remains stuck at 60 percent.
A Ministry of Defence audit shows that, despite a total contract value of Ksh21.9 billion, contractors have only received Ksh3.16 billion, leaving an outstanding balance of Ksh18.77 billion.
“Review of the Ministry’s project progress reports and implementation status reports indicates that three projects, initiated between November 2021 and June 2022 with a cumulative contract amount of Ksh21.9 billion, had stalled,” Auditor-General Nancy Gathungu said.
“The projects were all past their expected completion date.”
Flagship KDF Projects at a Standstill
Among the stalled projects is Uhuru Kenyatta’s flagship Ksh18 billion Level 6 Forces Research Referral Hospital (FRRH) in Kabete. The hospital, originally scheduled for completion by January 18, 2025, has stalled at 20 percent progress.
Another affected project is the permanent camp for the 8 Brigade Headquarters and Mechanised Infantry Battalion (MIB). The camp’s Ksh2.8 billion contract, signed on December 14, 2021, was supposed to be completed by August 14, 2023. However, work stopped at 20 percent, with only Ksh175 million paid, leaving a Ksh2.63 billion shortfall.
The upgrade of a 4.2-kilometer road has also stalled, with work abandoned at 60 percent completion. The project, which began on June 21, 2022, was set for completion by December 21, 2022. However, the contractor halted operations after receiving Ksh90.19 million, leaving an unpaid balance of Ksh147.99 million. The audit report did not disclose the exact location of this road project.
No Progress, No Accountability
During physical inspections in October and December 2024, auditors found no contractors on-site and no ongoing work.
Gathungu criticized the project management for failing to outline any measures to revive and complete the stalled developments.
“In addition, evidence that the contractors renewed their performance bonds was not provided for audit review,” she stated.
She further warned that, under these circumstances, the government cannot account for the Ksh3.16 billion already spent on the stalled projects, raising concerns over wasted public funds.
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