Kenya’s Ksh6 billion disaster: Who is really responsible for this massive loss?

Auditor General Nancy Gathungu has revealed alarming losses to Kenyan taxpayers amounting to more than six billion shillings.

This money was lost as fines and interest charges because government funds allocated for various projects were not used on time.

Speaking to the National Assembly Budget and Appropriations Committee on May 27, 2025, Gathungu pointed out that corruption and poor financial management are widespread in several government ministries.

Many ministries have failed to properly utilize funds, resulting in unnecessary losses for the country.

Between the 2020/2021 and 2023/2024 financial years, the government paid a total of Ksh6.569 billion as commitment fees on loan amounts that were not drawn or used.

Specifically, in the 2023/2024 year alone, about Ksh1.6 billion was lost because funds meant for projects were not spent. That year, out of a total project budget of Ksh515.11 billion, over Ksh304.4 billion remained unused.Several important projects have stalled, including the Kapchorwa-Swam-Kitale-Eldoret Road, which was supposed to be completed last year.

The contractor has now claimed over Ksh318 million due to delays caused by the government. Similarly, the Mandera-Ramu-Gari-Kobo highway, started in 2015, has seen minimal spending of just Ksh16 million.

Another major project, the Mombasa Bridge, which received Ksh49 billion in 2019, has only spent 2% of its budget.Gathungu also raised concerns about the Hustler Fund loans, describing them as poorly managed and full of irregularities.

The report further showed that several government departments have accumulated large interest fines due to late payments.

For example, the State Department for Medical Services owes nearly Ksh931 million related to Covid-19 vaccine payments.

Other projects like the Kenya Water Security and Climate Resilient Project and the Kibwezi-Mtomo-Kitui-Migwani road have also incurred huge interest penalties, reaching hundreds of millions of shillings.

These losses highlight the urgent need for better financial planning and accountability in managing public funds to ensure that taxpayer money is used effectively for Kenya’s development.