87 percent of key infrastructure projects in Kenya are overrun by time leading to cost delays further sinking the country in debt.

The country has already been fined Sh5.7 billion ($55m) for the delays.

This is according to Deloitte latest report, which states that delay in completion of key infrastructure projects such as roads and power is leading to significant cost escalation.

One such project which has been overrun by time is the 310 megawatts Lake Turkana wind power project which is already complete but a transmission line to connect it to the national grind is yet to be constructed.

Kenya recently awarded a consortium of Chinese firms a Sh9.6 billion ($93m) contract to complete the transmission line by August 31 as it races against time to complete the full operations of project and avoid further penalties.

The country has already been fined Sh5.7 billion ($55m) for the delays and the ministry of Energy early this month said further delays beyond June would attract a Sh1 billion ($9.7m)fine monthly to be absorbed by taxpayers through their power bills.

Kenya is already heavily indebted to china which funds majority of the country’s major infrastructure projects, and with 90 percent of the projects run by the government, further delay cost could only sink the country deeper in debt.


Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke