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Taxpayers lose billions as rogue firms paid more for delayed projects
Workers connect high voltage power lines at Voi in Taita Taveta County on June 3, 2013. Ketraco is on the spot for paying Kalpataru Power Transmission Ltd Sh964.5 million after the firm claimed Sh3.8 billion for idling and overheads. FILE PHOTO | NMG
Taxpayers are losing billions of shillings through a rogue contracting practice said to be rife in government parastatals where companies earn more for delaying projects than when they complete them on time.
The allure of fat compensation for idling is one of the reasons projects go through costly delays borne by the taxpayer who at times take too long to gain from the developments or derive no benefit at all in the long run.