A Sh5.3 billion irrigation project that Deputy President William Ruto launched in Western Kenya without involvement of line ministries is on the spot as contractors demand compensation for delays.
Parliament heard that as a result of bypassing Water ministry, the National Irrigation Board (NIB) and the National Land Commission, the project launched by Dr Ruto on June 8, 2019, risks stalling and exposing taxpayers to cost escalation.
Chinese contractor Sinohydro Company has already put in a claim for Sh509 million for delay in the construction works although project engineer who is the supervising consultant puts the outstanding claims at Sh50.7 million.
“The total determination by the engineer to date therefore amounts to Sh50.7 million, but which the contractor intends to contest and take the dispute to the NIB board,” a report tabled in Parliament shows.
The Public Accounts Committee (PAC) said Dr Ruto misled the country when he announced that the Lower Nzoia Irrigation project-affected persons (PAPs) had been compensated prior to launch in Busia and Siaya counties.
Water ministry Principal Secretary Joseph Irungu, NIB's chief executive Gitonga Mugambi, and acting NLC chief executive officer Kabale Tache all told PAC that the DP's office did not contact them ahead of the launch of the project funded by donors under "the Kenya Water Security and Climate Resilience Project".
“There was no contact between the DP’s office and my ministry. I can’t confirm that my CS was contacted because there is nothing in writing,” Mr Irungu said.
The NIB, which is the project implementing agency, said it was not contacted prior to the launch. “There was no contact between DP and NIB. I was however present during the launch on instructions by then Principal Secretary Fred Sergor. He instructed me to attend the function,” Mr Mugambi said.
“NIB is coordinating implementation on the ground and we are dealing with the contractor on daily basis. One challenge is that I have no land for contractor to do the job. My work is to construct when I get land from NLC,” Mr Mugambi said.
Ms Kabale said NLC has not completed compensation of people affected by the project as it was undertaking valuation at the time of the launch.
“When I came to office, I was told gazettement of the compulsory acquisition did not take effect immediately for the project to close to a year. It is until December 22, 2017 that the gazette was made. We are still doing compensation and we have paid Sh185 million for the Siaya section and none for Busia,” Ms Kabale said.
The project, which covers Ugunja, Alego Usonga and Budalang'i constituencies is aimed at boosting rice production and preventing floods in Busia and Siaya counties.
The project is funded through a Sh3.9 billion loan from the World Bank and Sh1.4 billion from Germany.
The Chinese company started works in June last year.
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