This archive report was first published on 20 September 2019.
Published on September 20, 2019, President Uhuru Kenyatta's directive to cancel the Kimwarer Dam project and downscale the Arror Dam project has raised concerns about the country's financial and diplomatic implications.
The Arror and Kimwarer Dams project are currently the subject of a court case involving over 20 officials, including National Treasury Cabinet Secretary Henry Rotich, who face corruption-related charges, including inflating the cost of the two dams.
According to Water Cabinet Secretary Simon Chelugui, the cancellation of the Kimwarer Dam project could result in Kenya losing billions of shillings, as well as straining relations between Kenya and Italy, which is involved in the project.
Chelugui had earlier expressed concerns about the cancellation of the contract with Italian firm CMC Di Ravenna, which is also implementing the multi-billion Itare dam in Nakuru, citing the risk of losing monies already paid for the project and straining diplomatic relations between Nairobi and Rome.
The Arror dam's scope and cost have been revised to between Ksh.13 billion and Ksh.15 billion, raising questions about whether the bankrupt CMC Di Ravenna can be expected to implement it, and at what cost, given the lost value of the contract.
With the court case ongoing, the presidential directive could complicate matters further, and the government may need to consider awarding the contract to another firm, which could raise concerns about the country's financial and diplomatic implications.
