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KeNHA on the Spot Over KES.128 Million in Dormant Accounts

October 25, 2024

The Kenya National Highways Authority (KeNHA) faced scrutiny on Wednesday over financial discrepancies in its audited accounts for the 2020/2021 and 2021/2022 fiscal years.

During a session with the National Assembly’s Public Investments Committee on Commercial Affairs and Energy, Members of Parliament questioned KeNHA Director-General Eng. Kungu Ndungu and his team about why Kes.128 million remained tied to completed projects.

The MPs noted that these funds were held in dormant bank accounts, raising suspicions that such financial gaps could lead to potential theft and corruption. In response, the agency confirmed the closure of six dormant accounts, stating that only one account remains active due to its connection with an ongoing project.

The MPs raised additional concerns from the audit, including numerous unfinished projects, significant pending bills, uneven resource distribution for development, and delays caused by contractors.

KeNHA Director General Kungu Ndungu (right) before the National Assembly’s Public Investments Committee on Commercial Affairs and Energy on October 23, 2024.

Chairperson David Pkosing (Pokot South) expressed his worry regarding the outstanding payments, insisting that Treasury CS John Mbadi and Transport CS Davis Chirchir must clarify why the road agency struggles with these issues.

Pkosing emphasized that some contractors have not received payment for over three years, creating significant challenges in their operations. He also noted that both Treasury CS Mbadi and Transport CS Chirchir are expected to appear before the Committee on Tuesday, October 29, to address these matters.

“This is not the fault of the Director-General or his team, but a political issue,” Pkosing remarked.

Furthermore, the audit questioned KeNHA’s expenditure of Ksh.11 million on overseas training amid the government’s austerity measures.

In defense, KeNHA’s Director-General provided documents showing approval of the travel plans by the State Department for Infrastructure.



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