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Originally published by Capital News
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April 23, 2026
4h ago

PAC Flags Costly Delays as Govt Pays Millions in Interest Penalties on Projects

PAC Flags Costly Delays as Govt Pays Millions in Interest Penalties on Projects

At the centre of the concerns is the Thiba Dam project, where the Auditor-General flagged a payment of Sh42.12 million made to a contractor as accrued interest penalties resulting from delayed settlement of dues. - Kenya breaking news | Kenya news today | Capitalfm.co.ke..

✨ Key Highlights

The Public Accounts Committee (PAC) has flagged significant financial mismanagement within government projects, specifically highlighting millions lost in interest penalties due to delayed payments. This issue came to light during deliberations on the State Department for Irrigation's 2023/2024 financial accounts.

  • Approximately KSh42.12 million was paid as accrued interest penalties on the Thiba Dam project alone due to delayed payments.
  • The Public Accounts Committee (PAC), chaired by Butere MP Tindi Mwale, and Principal Secretary Ephantus Kimotho of the State Department for Irrigation were key participants in the discussions.
  • Delays were attributed to underfunding and constrained exchequer releases from the National Treasury, leading to systemic inefficiencies and avoidable costs.

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