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NMS exit stalled four small claims courts construction
From left: Nairobi Metropolitan Services (NMS) Director General Mohamed Badi, Nairobi County Governor Johnson Sakaja and Deputy Governor Njoroge Muchiri walk towards the KICC after the handover of Deeds of Transfer back to the new Nairobi County Government on September 30, 2022.
The construction of four small claims courts has stalled since the Nairobi Metropolitan Services (NMS) handed over the projects to the Judiciary in 2023, Auditor General Nancy Gathungu revealed.
The project included the construction of small claims courts in four locations within Nairobi County including Dagoretti, Kasarani, Mihango, and Huruma.
A small claims court is mandated to handle monetary disputes whose value is below Sh1 million. Most of the suits in this arena are not complex.
Ms Gathungu says that the projects had been initiated under NMS as part of an intervention to expand access to justice within identified low-income areas.
On June 29, 2023, a deed of novation was signed between the NMS, which was then under the office of the President, and the Judiciary to relinquish the responsibility of the projects to the latter.
A review of the Mihango project showed that a tender was advertised in February 2024, with an engineer’s project cost of Sh78.4 million.
The matter is similar to the Kasarani court where a tender was issued on the same date for an engineer’s estimate of Sh74.6 million Ms Gathungu says the Huruma small claims court had started construction works but the project was faced with calls for termination.
The auditor general cautioned that the delays may lead to cost escalations and loss of value for money.
“The tender for the completion of Mihango Small Claims Court was advertised on February 12, 2024, with an estimated engineer's cost of Sh78,440,834… Six (6) bidders submitted applications for the works,” explains Ms Gathungu.
“However, the Tender Evaluation Report dated March 15, 2024, recommended termination of the procurement process due to the non-responsiveness of all bids.”
Another audit carried out in October showed that the procurement process had not been restarted.
“Physical verification conducted in October 2024 revealed that the project remained stalled at 20 percent completion level, a stage that was achieved under NMS before the project was transferred to the Judiciary.”
An evaluation committee recommended tender be awarded to a contractor for Sh73.16 million in March 2024.
At the time of the audit in October, the project had not progressed and the contractor was not on site.
“The project remained stalled at 20 percent completion, a level achieved by the NMS before the project's transfer to the Judiciary. The contractor was not on-site during the verification, and instances of vandalism on steel reinforcement bars were observed” the Auditor-General said.
The project cost Sh35.7 million according to an estimate from an engineer but was awarded Sh29.9 million.
“Review of records revealed that construction works had begun and a total amount of Sh5,449,730 paid in respect of two certificates. However, due to delay in execution of the works, an intention to terminate the contract was issued to the contractor on September 25, 2024,” said Ms Gathungu.
“Further, physical verification done on October 22, 2024, revealed that the works were at 60 percent completion level and the contractor was not on site.”
