Kenya’s State Department for Roads, led by Director-General Kung’u Ndung’u, is under fresh scrutiny after revising records regarding a Sh6.19 billion payment to Israeli contractor SBI International Holdings Kenya.
According to the Nation, this adjustment has left many wondering where the taxpayer money has truly gone.
Previously, a budget report to the National Treasury indicated that as of June 2023, Sh6.19 billion had been paid to SBI following a series of court losses faced by the Kenya National Highways Authority (KeNHA) during the Uhuru Kenyatta administration.
However, the new disclosures for the year ending June 2024 show a starkly reduced figure of Sh800 million, prompting questions about the true extent of the payment to the Israeli firm.
SBI, which had been awarded Sh6.56 billion for the breach of its contracts with KeNHA over stalled road projects, was initially promised significant compensation for delays caused by the termination of nine projects on the Mau Summit-Kisumu highway.
These projects were scrapped for failing to meet deadlines, but international courts upheld SBI’s claim for compensation.
As the KeNHA’s Director-General, Ndung’u’s office has not yet responded to calls or messages seeking clarification on the situation, leaving the public in the dark about how much of the promised payout was actually transferred.
The contractor’s compensation, which includes large sums for projects like the Kisumu Boys Roundabout and the Kericho-Nyamasaria road, has raised eyebrows, particularly regarding the transparency of such large payouts.
The matter was further complicated when the Kenya Revenue Authority (KRA) tried to seize Sh3.6 billion of the compensation due to a tax dispute with SBI.
But Kungu Ndung’u is not new to scandals. In 2024, a petition was filed to remove him from his position as Director-General of the Kenya National Highways Authority (KeNHA) over allegations of irregular appointment.
The petition claimed that his appointment was marred by nepotism, coercion, and undue political influence, with former Transport Cabinet Secretary James Macharia and retired President Uhuru Kenyatta allegedly playing significant roles in the process. The petitioner, Francis Awino, further alleged that Ndung’u’s academic credentials were contested, raising concerns about his suitability for the role.
Earlier, in 2023, Ndung’u faced criticism over his appointment as KeNHA Director-General, with questions raised about the transparency and integrity of the selection process.
Reports indicated that his appointment exposed flaws in Kenya’s leadership vetting, leading to public outcry and calls for greater accountability in public service appointments.
