With Sh69.5 million paid to the contractor awarded to construct Sh247 Million Mutuini Market, Nairobi City County government cannot account for Sh69.7 as no project status to confirm progress six months after the completion period set in the contract have elapsed.
This has been revealed by Auditor General Nancy Gathungu in her 2023/24 Financial year audit report as she raised queries over irregularities in the procurement and stalled construction of the modern Mutuini market in Dagoretti South, a flagship project under Nairobi Governor Johnson Sakaja’s administration.
In her report, Gathungu highlights that the Sakaja-led administration awarded a Sh242 million contract for the project on February 7, 2023, with a completion deadline set for August 7 last year, but it stalled and six months after the elapse of the contract term it has not been completed.
A review of procurement documents by the auditor indicated that there was no approval for an extension, and the performance bond had expired on July 2, last year without renewal.
In her report, the AOG revealed that a payment of Sh69.5 million had already been made, yet there was no project status report to confirm the progress.
During the groundbreaking ceremony, Governor Sakaja had said that the market would ease congestion and improve trading conditions.
“The market will serve the people of Mutuini and the residents around Dagoretti, and it will put an end to the residents’ grievances, which have been going on for the past four years under the previous regime,” Sakaja stated.
City Hall had outlined plans to modernize markets, ensuring they had enough space to eliminate shanties and reduce the risk of fires caused by illegal electricity connections.
Mutuini market was the first of 10 markets the county government planned to build by 2027 to address the shortage of trading spaces in Nairobi.
The Mutuini market was fully funded by the county government, while some other markets would be built in collaboration with the national government.
Once completed, the market was expected to accommodate 500 traders and serve as both a wholesale and retail hub.
However, with the project now stalled and audit findings questioning the value of the Sh69.5 million already spent, concerns have emerged over whether the county will complete the market as planned.
With 42 markets across the county, still traders do not fit in all of them as they are many are forced to operate on roadsides and streets within the Central Business District.