The Ethics and Anti-Corruption Commission (EACC) has raised concerns over corruption risks and weak governance in the implementation of the Sh25 billion County Aggregation and Industrial Parks (CAIPs) programme. The anti-graft agency warned that systemic weaknesses could undermine the multi-billion-shilling project, which is jointly funded by the national and county governments. EACC called for stronger safeguards in procurement, construction, management, and operationalisation of the industrial parks.
EACC conducted a compliance monitoring exercise on the project and presented its report to State Department for Industry Principal Secretary Dr. Juma Mukhwana. The report identified weaknesses, including unclear land ownership, irregular spending, inadequate feasibility studies, weak monitoring and evaluation, and failure by some counties to use a Central Bank of Kenya Special Purpose Account (SPA) for CAIPs funds. Several counties had yet to fully deposit their share of funds into the SPA.
Nakuru and Homa Bay counties were operating CAIP accounts through commercial banks, exposing project funds to risks of mismanagement. The programme requires each county and the national government to contribute Sh250 million towards construction of the parks. EACC Director of Preventive Services Vincent Okong’o said gaps in feasibility studies, geological surveys, concept notes, and appraisal studies had contributed to arbitrary selection of project sites and undermined evidence-based decision-making.
EACC flagged an advance payment of Sh94 million by Kisii County to a contractor before commencement of works, although the matter has since been regularised. Bungoma County was cited for using Sh16 million meant for construction on training committees. Contractors had abandoned some sites in Uasin Gishu and Bungoma without notice, although they had since resumed work. Increased project costs arising from variations and weak monitoring and evaluation had further exposed the programme to corruption risks.
EACC found that most counties lacked governance structures, including Special Purpose Vehicles (SPVs), needed to facilitate operations once the parks are completed. Unclear ownership of land in some counties had left industrial park sites vulnerable to grabbing. The commission recommended that counties put in place necessary governance instruments and infrastructure required to make the parks operational after completion.
State Department for Industry Principal Secretary Dr. Juma Mukhwana acknowledged that implementation had progressed at different rates in the counties. He said the level of investor interest was uneven, with greater interest recorded in some parts of the country than others. Dr. Mukhwana proposed that officials from his State Department work with the Council of Governors to develop an implementation matrix based on EACC findings.
Dr. Mukhwana commended Meru, Wajir, Garissa, Kirinyaga, Kisii, Migori, Embu, and Machakos counties for making progress in implementing the programme. The CAIPs programme aims to establish industrial parks across the country to promote manufacturing, aggregation, and value addition while creating employment opportunities. The State Department will continue working with EACC and the Council of Governors to develop an implementation matrix anchored on stronger agreements.
Key points
- EACC raises concerns over corruption risks and weak governance in Sh25bn County Aggregation and Industrial Parks programme
- Programme requires each county and national government to contribute Sh250 million towards construction of parks
- State Department to work with Council of Governors to develop implementation matrix based on EACC findings
