Counties across the country are struggling to complete development projects worth billions, with contractor-related challenges emerging as the biggest obstacle.
Data from the Controller of Budget (CoB) for the 2024/2025 financial year reveals that 158 county projects in 18 devolved units remain unfinished, with Sh3.8 billion already spent and an additional Sh5.3 billion required to complete them.
The stalled works are mostly linked to contractors abandoning projects, slow delivery, or lacking the capacity to execute contracts. According to the report, nearly half of these projects have been derailed due to contractor-related issues.
At least 30 projects were completely deserted, some soon after work began, leaving communities with half-built schools, dispensaries, and market sheds. In 15 cases, contractors refused to continue unless their terms were revised or additional funds were provided. Seven projects collapsed because the firms awarded the tenders did not have the financial or technical ability to complete the works, while another seven faced prolonged delays. Eight contracts expired without any work starting, and in seven more, contracts were terminated due to disputes or poor performance.
In total, problems caused by contractors account for more than 80 stalled projects, representing over half of all incomplete county projects. However, these failures also expose systemic issues within counties, including weak procurement, poor supervision, and politically influenced contracting.
Auditor-General Nancy Gathungu has repeatedly flagged that counties often hire unqualified firms, sometimes linked to powerful individuals, resulting in substandard work or total non-delivery. When such contracts fail, counties are forced through lengthy termination procedures, wasting time and taxpayers’ money.
In August, the Auditor-General reported that 33 counties had 248 stalled projects worth over Sh20 billion during the 2023/2024 financial year. Machakos County led with 54 stalled projects valued at Sh314 million, followed by Nyandarua with 43 projects worth Sh403.9 million. Kakamega County had the highest total project value stalled at Sh8.1 billion, followed by Nairobi at Sh2.4 billion and Trans Nzoia with two projects totaling Sh2.1 billion. However, these numbers may be lower than the actual situation, as some counties did not submit full data.
The reports also highlight that many stalled projects are now attracting penalties due to delayed payments. Counties owe contractors millions for completed works, while others are embroiled in legal disputes after failed contracts.
The CoB report singles out Baringo County, which has the highest value of stalled projects at Sh1.3 billion. Only Sh131 million has been spent, leaving a Sh1.1 billion gap. Among the unfinished works are nine Early Childhood Development classrooms worth Sh9 million, abandoned after contractors refused to continue.
In Machakos, nearly all 54 stalled projects have been affected by contractor issues. Several market buildings, some more than 80 percent complete, were abandoned midway. The county has already spent Sh314 million but requires Sh817 million more to complete these projects.
Last year, the Senate Committee on Devolution and Intergovernmental Relations, while reviewing abandoned projects, observed that “contractors were the weak link in devolution’s chain,” noting that underqualified bidders, often politically connected, win tenders but fail to deliver.
Contractors are not the sole contributors to the delays. In at least nine projects, work stalled because counties delayed or withheld payments. Many counties blame delayed disbursements from the national government, creating a cycle where counties stop paying, contractors halt work, and projects remain incomplete indefinitely.
