An audit report has revealed that the government still owes the Chinese contractors who built Thika Superhighway about 10 years ago.
Auditor General Nancy Gathungu in a report says the Treasury is yet to clear a pending bill of Sh 428.6 million and warned that taxpayers will face increased penalties if the debt is not settled.
“The project is at risk of costs and penalties with the continued delay in making payments,” says Gathungu in a report tabled in Parliament.
She noted that an audit of the Kenya National Highways Authority (KeNHA) revealed that the contractors behind the 50-kilometer dual carriageway are owed a total of Sh428,623,554 as of June 30th, 2021. KeNHA blamed the delays in the release of funds on the government.
“However the project was not availed for audit review, being more than six years after the expiry of the closure period,” she said.
The project cost Sh32 billion (US$360 million), with the funding being provided by the African Development Bank (US$180 million), the Exim Bank of China (US$100 million), and the Kenyan government (US$80 million).
The highway was divided into three parts, each awarded to a different Chinese contractor namely China Wu Yi, Sinohydro, and Shengli Engineering.
Gathungu also pointed out that the China Exim Bank has not been paid Sh3.6 billion used to build the Nairobi Southern Bypass.
KeNHA is now obligated to release the funds, an increase of Sh726 million from the outstanding Sh2.9 billion in 2020.
