In a 2019 statement, Treasury Cabinet Secretary Henry Rotich revealed that 87% of funding for the Arror and Kimwarer dams came from undisclosed sources, contradicting claims of Italian government support. The Treasury CS disclosed that a syndicate of four international banks, including Intesa Sanpaolo SPA and BNP Paribas Fortis, provided only 12% of the financing, while the remainder allegedly originated from Italy's export credit agency SACE.
The statement raised questions about SACE's role, as the agency typically supports Italian exports rather than directly funding foreign infrastructure projects. Analysts criticized the lack of transparency in loan agreements, noting that billions in advance payments were made to the engineering contractor before verifying its financial stability. This practice, they argued, created risks of kickbacks and flawed due diligence.
The article urged full disclosure of all financing arrangements, citing concerns about repeating past scandals like Anglo Leasing. It highlighted risks in allowing foreign contractors to negotiate both project design and financing, which could enable opaque deals. Critics emphasized the need for scrutiny of creditors involved in the 87% funding share to prevent financial mismanagement.
