This archive report was first published on 8 July 2019.
Kenyan taxpayers lost more than Sh870 million in the botched Ministry of Petroleum's plan to provide poor homes with cheaper cooking fuel, a new audit has shown.
The audit, conducted by Auditor-General Edward Ouko, revealed that the project failed to attain its intended purpose and value-for-money was not obtained on expenditures totalling Sh870,339,283 incurred on the project as at June 30, 2018.
The project, which aimed to cut reliance on kerosene and charcoal, was piloted in Machakos and Kajiado counties and involved the supply and distribution of LPG cylinders, grills, and burners to households at subsidised prices.
However, the audit found that contracts were awarded on the basis of un-enforceable performance bonds and with no performance durations, leading to sub-standard cylinders being supplied to households.
Some contractors delivered cylinders with valves prone to fire hazards, while others failed to supply the required number of cylinders, grills, and burners.
As of April 1, 2019, only 66,103 out of 150,668 cylinders supplied had been inspected, and an undisclosed number had been distributed to consumers in two counties.
The audit also revealed that an estimated 88,565 cylinders were held at the National Oil Corporation (Nock) stores in Nairobi pending inspection and certification for conformity with the supply requirements.
One of the two suppliers contracted to supply 148,898 cylinders delivered only 23,873 in July 2017 at a cost of Sh52.5 million, but 15,350 of the cylinders (about 64 per cent) were found to be faulty.
The faulty ones were estimated to cost valued at Sh33.8 million, and attempts by the Ministry to enforce the performance bond worth Sh40.34 million provided by the supplier were unsuccessful.
The Consumer Federation of Kenya has filed a suit in court over the botched deal.
