This archive report was first published on 2 October 2019.
Published on October 2, 2019, a report by the Parliamentary Budget Office (PBO) revealed that at least 545 projects are white elephants, with the National Treasury estimating a loss of Sh72.5 billion.
Most of the unsustainable projects are major dams that were started without proper feasibility studies. The Kimwarer Dam in Elgeyo Marakwet County has been cancelled due to similar reasons, despite not being specifically mentioned in the PBO report.
The PBO report highlighted the level of wastage occasioned by greed, with the collective budget for the projects amounting to Sh363 billion. The report also stated that critical components to the framework of project life cycle such as feasibility studies, appraisal documents, and implementation support are not available or not well aligned.
Among the concerns is that contractors have the power and incentive to mis-declare the full extent of the costs, including concealing material information such as insurance from the onset. The economists have also warned that there are several other similar projects that are likely to be initiated in the financial year through supplementary budgets, yet they have not been approved in the main spending plans.
The Kenanie Leather Park, which has been touted as critical to the development of the leather industry, has been identified as a potential waste of public funds. The park has accumulated expenditure of Sh1.7 billion yet there is no tangible output.
