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, warning that systemic weaknesses could undermine the multi-billion-shilling project.

The anti-graft agency has called for stronger safeguards in the procurement, construction, management and operationalisation of the industrial parks, which are being jointly funded by the national and county governments.

The EACC raised the concerns after conducting a compliance monitoring exercise on the project and presenting 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.

EACC said several counties had yet to fully deposit their share of funds into the SPA, while Nakuru and Homa Bay 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 also contributed to arbitrary selection of project sites and undermined evidence-based decision-making.

The commission further 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 also cited for using Sh16 million meant for construction on training committees.

EACC said contractors had also abandoned some sites in Uasin Gishu and Bungoma without notice, although they had since resumed work.

The commission warned that increased project costs arising from variations, coupled with weak monitoring and evaluation that did not adhere to key performance indicators, had further exposed the programme to corruption risks.

It also 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, EACC said, had left industrial park sites vulnerable to grabbing and called for the expedited acquisition of the parcels.

The commission also recommended that counties put in place the necessary governance instruments and infrastructure required to make the parks operational after completion.

In an interview with KNA after receiving the report, State Department for Industry Principal Secretary (PD) Dr. Juma Mukhwana said the CAIPs programme had significant potential to promote manufacturing, value addition and job creation across the country but acknowledged that implementation had progressed at different rates in the counties.

He said the level of investor interest was uneven, with greater interest being recorded in some parts of the country than others.

Dr. Mukhwana said lessons from the implementation of the programme should be used to improve delivery and ensure that counties take greater ownership of the project.

He proposed that officials from his State Department work with the Council of Governors (CoG) to develop an implementation matrix based on the EACC findings, with clear remedies and timelines for addressing the weaknesses identified.

The PS said the implementation plan should be completed within about two to three weeks so that it can be presented alongside the EACC report to the counties.

He further proposed regional dissemination meetings to ensure county governments receive and understand the findings and agree on measures to address the identified shortcomings.

Dr. Mukhwana said the State Department would work with EACC, which has regional offices, to organise several workshops where county officials would be taken through the report and the proposed implementation measures.

He suggested that the meetings be held in regions such as Western and Nyanza, Central and the Coast, among others, to make it easier for counties to participate.

The PS said direct engagement with county governments would help prevent important details from being lost when the report is passed through intermediaries.

He also called for a more binding framework through which individual counties would commit themselves to implementing agreed recommendations.

The State Department said it would continue working with EACC and CoG to develop an implementation matrix anchored on stronger agreements to safeguard land, secure infrastructure such as roads, water and sewerage, and ensure the parks are delivered for their intended purpose.

Despite the challenges, Dr. Mukhwana commended Meru, Wajir, Garissa, Kirinyaga, Kisii, Migori, Embu and Machakos counties for making progress in implementing the programme.

The CAIPs programme is intended to establish industrial parks across the country to promote manufacturing, aggregation and value addition while creating employment opportunities.

by Chris Mahandara