Kisumu: The government is exploring the possibility of incorporating the languishing Sh19.9 billion Koru-Soin multipurpose dam into the newly established Infrastructure Development Fund to secure its financing, as stated by Deputy Chief of Staff and Head of the Government Delivery Unit (GDU), Eliud Owalo.
According to Kenya News Agency, Owalo made the announcement during an inspection tour of the dam site in Kisumu County, accompanied by national and county officials, implementing agencies, and local leaders. The aim is to move this long-delayed project from its current stalled state to a clear path towards completion by securing a significant capital influx through an infrastructure bond.
“This project cannot continue relying on the annual fiscal space, which can only manage about Sh1 billion. At that pace, we would need nearly 20 years to complete it. We are recommending that Koru-Soin be listed for consideration under the infrastructure development fund so that we pump in monumental financing at once and
sort it out once and for all,” Owalo emphasized.
The inspection tour aimed to verify the actual status of the dam and address the challenges that have caused work to stall despite an earlier groundbreaking. The government had initially made a Sh500 million down payment when the contractor was mobilized in 2022, and preliminary works were initiated. However, operations halted due to the contractor being owed Sh890 million in certified but unsettled bills.
Owalo stated, “The contractor has certificates totaling Sh890 million. Work has stalled. The purpose of our visit here today is to explore how the contractor can get back to the site as we explore tapping into the Infrastructure Development Fund.”
He further confirmed that the State Department for Water has already requested Sh900 million from the National Treasury as an immediate intervention measure. Half of these funds will be allocated to the contractor to partially clear pending certificates, while the remainder will be directed towards land compensat
ion.
A total of Sh2.2 billion is needed to complete payments for affected landowners in Kisumu and Kericho counties. Owalo noted, “We will be sorting out two problems at the same time. Compensation will continue as work resumes.”
Once completed, the dam is anticipated to provide several key benefits, including eliminating perennial flooding in the Nyando basin, supplying 72,000 cubic meters of water daily to residents of Kisumu and Kericho, supporting irrigation on 11,000 hectares of farmland, and generating 2.5 MW of electricity for the national grid.
Owalo also instructed county commissioners for Kisumu and Kericho to convene a stakeholder forum involving affected landowners, county governments, the National Land Commission (NLC), local leaders, the National Water Harvesting and Storage Authority, and agencies such as Kenya Electricity Generation Company (KenGen), Kenya Power, and Kenya Rural Roads Authority (KeRRA). This forum aims to harmonize compensation issues, access roads, and future construction
phases.
He reiterated that Koru-Soin remains a priority project for the Kenya Kwanza administration and that the proposed infrastructure bond offers the most sustainable path to revive it. “We want this project pursued to a logical conclusion within the tenure of this government,” he stated.
Despite efforts to secure financing, Owalo raised concerns about systemic problems hindering infrastructure projects across the country. He criticized contractors for overcommitting and using multiple proxy companies to win multiple tenders, leading to stalled works. He also highlighted political interference, with some politicians influencing procurement processes and protecting non-performing contractors.
“Politicians are not engineers. They should leave construction to qualified young people. If you are paid and fail to deliver, we will recommend that you be blacklisted,” he warned.
Owalo added that the delivery unit would continue verifying all government projects to ensure that reports submitted to Nairobi reflec
t the actual situation on the ground and to enforce corrective actions where necessary.
Following the dam visit, the team also inspected the Mamboleo-Miwani-Chemelil road, the Kabonyo-Kanyagwal fisheries project, affordable housing sites in Kisumu, and the Kisian Economic Stimulus Programme (ESP) market.
