KSh59.3B Transport Spending Raises Questions as Rail and BRT Projects Lag

An audit of Nairobi's transport authority offers a more detailed example of the gap between money committed and infrastructure delivered. In an August 2026 report, The Star described findings from the authority's 2024/25 audit, which recorded KSh2.5B in trade and other payables.

The report said KSh2.449B, or 98% of the total, had remained unpaid for more than three years, with a significant share linked to the Thika Superhighway BRT contractor.

The cost of a stalled bus corridor

The audit findings reported by The Star said the contractor stopped work on 11 January 2022 after payments were delayed. The contract price was KSh5.575B, while work worth KSh3.108B had been certified as completed. The value of work in progress had not changed across successive financial years, according to the report.

The audit also identified KSh1.039B in interest associated with delayed payments and KSh745.1M in contingent liabilities linked to contractor claims. Together, those amounts reached KSh1.784B, about 32% of the original contract price. The Auditor-General warned that interest on delayed certificates had undermined value for money on the project, as reported by The Star.

An earlier Auditor-General's report on the Nairobi Metropolitan Area Transport Authority, covering the year ended 30 June 2024, had already flagged KSh1.577B in payables. Of that amount, KSh1.520B had been outstanding for more than two years and related to the Thika Road BRT contractor.

The later figures reported for 2024/25 suggest the payment problem persisted and grew, although the reporting periods and balances should not be conflated.

Spending is not the same as delivery

The Office of the Controller of Budget's national implementation report for 2025/26 compares government spending with budget targets and discusses implementation challenges. Such reports are important because a department can record expenditure while a particular project still faces procurement delays, unpaid certificates, land issues or incomplete works.

That distinction matters to commuters. A bus corridor is valuable when stations, lanes, buses and operating arrangements work together to make journeys more reliable. When construction stalls, people continue to rely on existing matatus and buses, while businesses lose time in traffic and public funds may be exposed to further interest or claims.

The KSh59.3B figure reported by The Kenyan Wall Street is a department-level total. Without a project-by-project reconciliation, it should not be read as proof that rail and BRT projects themselves received that entire amount. A transparent account would show the approved budget, funds released, payments made, work certified and physical progress for each major project, all over the same reporting period.

Why delayed payments become expensive

The BRT audit shows how a financing problem can become a delivery problem. When an authority cannot pay a contractor for certified work, the contractor may slow or stop construction, seek interest or pursue a claim. The extra costs then compete with the money needed to finish the original project. The public can be left paying more without receiving the service on schedule.

The authority told auditors that development allocations had not matched the cost of the capital project and pointed to the government's tight fiscal position. That explanation matters, but it does not remove the need to plan projects realistically before signing contracts. A project that depends on funds that are not available on schedule carries a risk from the start.

The government and transport agencies should publish a clear status for each major rail and BRT project: current contract value, cumulative payments, certified work, unpaid certificates, unresolved claims, physical completion and the next delivery milestone. Where figures differ between budget reports and audit reports, agencies should explain whether the gap reflects timing, accounting treatment or a revised project scope.

Mwenendo has previously examined how Kenya's rail network performs beyond its headline revenue and how transit hubs can create value around railway stations. Those questions become harder to answer when spending and physical progress are reported separately.

What taxpayers need to see next

The next useful update is not another aggregate spending figure. It is a reconciliation that shows where the money went and what it bought, supported by current project schedules and independent checks. For the Thika Road BRT corridor, that means explaining the outstanding payments, the status of contractor claims, the cost to complete the works and a realistic timetable for delivery.

Public spending should be judged against its purpose. A budget can be fully absorbed while a transport service remains unfinished. Clear reporting that connects money, contracts and completed work would help Parliament, commuters, businesses and taxpayers assess whether the projects are progressing and what further funding is justified.