- Kenha has also been fingered over delayed construction of projects.
- The report comes at a time when Kenha chairman Wangai Ndirangu is fighting to keep his job after revelations that his appointment breached the law.
Image: ALICE WAITHERA
Pay delays by Kenha to contractors cost the taxpayer in excess of Sh6 billion in 2016-2020, a report by the auditor general shows.
Nancy Gathungu said the interest would have been avoided had the payments been made promptly.
The report, however, attributed the failure to clear the payments to inadequate budget support from the exchequer.
"A review of contract records revealed that the cumulative interest expenditures amounted to Sh6.46 million for the year ended June 30, 2020.
"In the circumstances, it is not possible to confirm whether management has been efficient in the use of public resources," she said.
The report comes at a time when Kenha chairman Wangai Ndirangu is fighting to keep his job after revelations that his appointment breached the law.
Further, the roads agency, which has been grappling with internal wrangles is on the spot over huge pending bills.
The agency's books of account reflected a balance of Sh36.84 billion in respect of trade and other payables from exchange transactions.
This constituted an amount of Sh28.7 billion being development payables, pending bills as at 30 June 30 2020 were Sh51,219,097,140.
The authority said accumulation of the pending bills was occasioned by failure of the National Treasury to release payments of the bills.
Gathungu said failure by the management to settle bills during the year exposes Kenha to the risk of incurring interest expenses.
She said this may adversely impact on the provisions for the subsequent year, to which they have to be charged.
Kenha has also been fingered over delayed construction of projects.
The auditor cited a contract awarded to a firm for the construction of a new bridge at a contract sum of Sh481 million.
The intervention, according to Gathungu, included construction of a new bridge of two spans of approximately 55 metres, each of composite steel and concrete.
Also, the construction of 370 metres approach roads to the new bridge.
The contract was expected to be completed by July 18, 2020.
However, the contractor sought and was allowed an extension of 175 days citing delays in sourcing and approval of material sources.
Also, delays in test pilling and resulting changes in test loads and Covid-19 curfew and cessation of movements coupled by bad weather conditions.
"The extension resulted in cost to the consultants of Sh24.06 million with Sh.6.42 million being spent on the contractor’s contingency.
The balance of Sh19.66 million was deemed as variation and representing 23.98 per cent of the contract price of Sh81,983,000.
"The above are indicative of inefficiencies in the contract management and administration," the report states.
"It was, however, noted that the project is behind schedule with progress at 50 per cent as at 30 June, 2020 against the contract time elapse of 97.5 per cent," the auditor said.
Besides, the authority has been accused of mismanaging the ownership of its land and buildings.
The agency's accounting books shows property, plant and equipment balance of Sh494.76 billion.
This included land and buildings valued at Sh148.36 million and Sh41.78 million in 2019 respectively.
The buildings are occupied by staff in the North Rift region.
However, the authority lacks title deeds for the property.
"In the circumstances, the validity and ownership of property, plant and equipment amounting to Sh190.14 million could not be confirmed," the report reads.
(Edited by Bilha Makokha)