Kenya is losing more than Sh600 billion in stalled and poorly managed public infrastructure projects due to corruption risks, mismanagement of funds, weak implementation of laws, and delays in project execution, according to a new report.
A Transparency International Kenya assessment titled Corruption Risk Assessment of Infrastructure Projects in Kenya reveals significant vulnerabilities across major national projects, raising concerns over transparency, procurement integrity, and accountability in public investments.
The report, which used the Infrastructure Corruption Risk Assessment Tool (ICRAT), found that the Standard Gauge Railway (SGR) project recorded the highest corruption risk among the assessed projects, with a vulnerability score of 4.49, categorised as very high.
According to the findings, key weaknesses in the SGR project included a weak grievance redress mechanism, limited public disclosure of full project costs, loan terms and expenditure details, and opaque procurement processes. The report also cited non-transparent community engagement as a major concern.
The SGR project, largely financed through Chinese loans and implemented by external contractors, has also raised concerns over long-term debt sustainability and potential conflicts of interest.
The report further assessed housing projects implemented under different administrations, including the Affordable Housing Programme under the Big Four Agenda during the tenure of former President Uhuru Kenyatta. That project recorded a moderately high corruption risk score of 3.24.
Among the key risk areas identified were procurement-related conflicts of interest, environmental planning gaps, and limited transparency in budget allocation versus actual expenditure. The report noted that despite a more structured policy framework, bureaucratic and procurement delays, coupled with limited private sector participation, affected its effectiveness in addressing the housing deficit.
Another project assessed, the Vihiga Affordable Housing Project under the Bottom-Up Economic Transformation Agenda, recorded a corruption risk score of 3.56, also classified as moderately high.
The report highlighted the absence of critical documentation such as Environmental Impact Assessments and feasibility studies, weak public participation during project design, and possible conflicts of interest in procurement processes. These issues, the report said, raise questions about transparency and long-term sustainability.
“The corruption risk assessment in these three projects illustrates varying corruption risks ranging from very high risks in the SGR project to moderately high risks in the two housing projects. Weak and limited public participation, inadequate documentation, and opaque procurement processes catalysed by vested interests were some of the red areas that magnify the risk of corruption in the three assessed infrastructure projects,” the report states.
The report recommends that the Kenya Railways Corporation, the State Department for Housing and Urban Development, Boma Yangu, and other implementing agencies should proactively publish project selection documents, final contracts, and implementation progress reports to enhance transparency and accountability in public investment management.
It also urges Parliament to strengthen oversight and legislative frameworks to ensure value for money in infrastructure development, while aligning investment policies under the National Infrastructure Fund Act, 2026 with long-term development priorities and return-on-investment principles.
Further, the report calls on the Directorate of Public-Private Partnerships to guard against misuse of privately initiated proposals and promote competitive bidding for high-value infrastructure projects.
The National Treasury and Economic Planning is also urged to enforce corrective measures to improve value for money in ongoing and planned projects, ensuring alignment with approved budgets.
Additionally, the report recommends mandatory disclosure of project documentation on public procurement portals, enforcement of conflict-of-interest regulations, and publication of beneficial ownership information for firms involved in infrastructure contracts.
Oversight bodies are encouraged to collaborate with civil society and other stakeholders to conduct regular corruption risk assessments, while the National Environmental Management Authority is urged to ensure disclosure of environmental and social impact assessments and related public participation reports.
Professional bodies are further called upon to strengthen ethical standards and accountability mechanisms within the sector, while the media and civil society are urged to enhance transparency through joint advocacy, public awareness, and social accountability tools such as expenditure tracking, citizen scorecards, and social audits.
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