The government has announced fresh plans to unlock the stalled Sh19.9 billion Koru-Soin Dam project after a high-level inspection by the Executive Office of the President’s Delivery Unit and key national and county agencies.
The multi-agency team was led by Eliud Owalo, the Deputy Chief of Staff in charge of Delivery and Government Efficiency in the Executive Office of the President.
The team toured the site to verify progress and address challenges that have crippled operations since 2022.
The Soin-Koru Dam expected to curb perennial flooding in Nyando, supply 72,000 cubic metres of water daily to Kisumu and Kericho counties, irrigate 11,000 hectares (27,181 acres) and generate 2.5 megawatts of power, has stalled despite an initial mobilisation of Sh500 million to the contractor.
According to Owalo, the contractor has pending certified claims totaling Sh890 million, which have not been paid, forcing works to stop.
The State Department for Water has requested Sh900 million from the National Treasury to jump-start the project.
Owalo said the funds will be split equally between settling part of the contractor’s pending certificates and addressing long outstanding land compensation claims amounting to Sh2.2 billion.
“We have agreed that once the money is released, 50 per cent will go to the contractor so work can resume immediately and the other half will be used for compensation,” he said.
To reduce tension and improve transparency, the government has directed county commissioners of Kisumu and Kericho to convene an all-inclusive partner forum.
The meeting will bring together affected landowners, the National Land Commission, county governments, political leaders, water agencies, KenGen, KPLC and road authorities.
Owalo said the forum will ensure local communities understand the project timelines, compensation procedures and the broader development plan connected to the dam.
He said the government now wants the dam listed under the new Infrastructure Development Fund to attract a substantial one-off investment.
Owalo warned that relying on the current annual budget allocations averaging about Sh1 billion would stretch the completion timeline to two decades.
“The urgent priority is to get the project back on track through Treasury’s support. But for long-term sustainability, we want the project considered under the Infrastructure Development Fund to be completed once and for all,” he said.
The delegation also raised concerns over contractors taking on more projects than they can handle, as well as political interference in procurement and site operations.
“It’s becoming a challenge when one contractor uses multiple companies to secure several government projects at once. They stretch themselves too thin and work stalls,” Owalo said.
He urged agencies to conduct thorough due diligence, including physical verification of equipment and staff capacity.
The team also cautioned politicians against fronting proxy contractors or meddling in project execution.
“Politicians are not engineers. They should leave construction work to qualified professionals. Any contractor who hides behind political influence will still be judged strictly on contract terms and if they fail, they risk being blacklisted,” Owalo warned.
The Soin-Koru Dam visit is part of a broader audit of government projects in the region.
The team later inspected the Mamboleo–Miwani–Chemelil road (Lot 1–3), the Kanyagwal Fisheries project, implemented jointly with the Hungarian government and the and Upper Kanyakwar affordable housing projects.
“People want roads, clean water, electricity, functioning markets, a revived sugar belt, and expanded Kisumu International Airport. That is the true measure of leadership,” officials who toured the facility said.
