This archive report was first published on 26 July 2019.
Published on July 26, 2019, taxpayers in Kenya are facing a potential loss of Sh11 billion that has already been paid to secure funding for the stalled Itare Dam project in Nakuru County.
Water and Sanitation Cabinet Secretary Simon Chelugui informed the National Assembly's Environment committee that termination of the contract with Italian firm CMC Di Ravenna, which has been declared bankrupt, would expose the government to a loss of Sh11 billion.
Chelugui stated that the ministry had instructed the Italian company to sub-contract the project to complete it, but no response has been received since March.
He emphasized that the ministry has prepared a report recommending the sub-contracting of the project, which will be presented to the Cabinet for consideration.
Chelugui requested an additional two months to September to allow the Cabinet to make a decision on the project's future.
He stated that if the Cabinet decides to terminate the contract, the government will cut its losses and move forward.
The revelations come after the arrest and prosecution of Treasury Secretary Henry Rotich and principal secretary Kamau Thugge over controversial payments of Sh19 billion to CMC di Ravenna for the construction of non-existent Kimwarer and Arror dams.
