Nairobi:The Ethics and Anti-Corruption Commission (EACC) has highlighted significant corruption risks and governance issues in the Sh25 billion County Aggregation and Industrial Parks (CAIPs) programme. The commission warns that these systemic weaknesses could threaten the successful implementation of the multi-billion-shilling initiative.
According to Kenya News Agency, the EACC has called for enhanced safeguards in the procurement, construction, management, and operation of the industrial parks, which receive joint funding from national and county governments. These concerns arose following a compliance monitoring exercise, with a report presented to State Department for Industry Principal Secretary Dr. Juma Mukhwana.
The EACC’s report points to several weaknesses, such as unclear land ownership, irregular spending, insufficient feasibility studies, and weak monitoring and evaluation mechanisms. Some counties have also failed to utilize a Central Bank of Kenya Special Purpose Account (SPA) for CAIPs funds
. Notably, Nakuru and Homa Bay counties have been operating CAIP accounts through commercial banks, thereby exposing project funds to management risks.
The programme mandates that each county, alongside the national government, contribute Sh250 million towards the parks’ construction. EACC Director of Preventive Services Vincent Okong’o noted that gaps in feasibility studies and geological surveys have led to arbitrary project site selections, undermining evidence-based decision-making.
The commission has also flagged an advance payment of Sh94 million by Kisii County to a contractor before the start of work, although this issue has been resolved. Bungoma County was similarly cited for diverting Sh16 million intended for construction towards training committees. Contractors had abandoned sites in Uasin Gishu and Bungoma without notice, although they have since resumed work.
The EACC warned that increased project costs due to variations, coupled with poor monitoring and evaluation, have further exposed the
programme to corruption risks. Additionally, most counties lack governance structures, such as Special Purpose Vehicles (SPVs), necessary for park operations once completed. Unclear land ownership in some areas has also left sites vulnerable to land grabbing, prompting calls for expedited land acquisition.
In response to the report, Dr. Juma Mukhwana acknowledged the CAIPs programme’s potential to drive manufacturing, value addition, and job creation. However, he noted that implementation has varied across counties, with differing levels of investor interest. He emphasized the need for lessons from the programme’s execution to enhance delivery and ensure county ownership of the project.
Dr. Mukhwana proposed collaboration between his department and the Council of Governors (CoG) to develop a matrix for implementing the EACC’s recommendations, with specific remedies and timelines. He suggested that this plan be finalized within two to three weeks for presentation to the counties alongside the EACC report.
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urthermore, Dr. Mukhwana proposed regional dissemination meetings to ensure that county governments understand the findings and agree on corrective measures. The State Department plans to work with the EACC, utilizing their regional offices to organize workshops for county officials.
