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KeNHA Faces Sh8.2 Billion Penalties as Road Project Disputes Exceed Sh32 Billion

Auditor General Nancy Gathungu making a presentation during the 8th Public Finance Management (PFM) Conference on November 5, 2025, at the Grand Royal Swiss Hotel, Kisumu.
Auditor General Nancy Gathungu making a presentation during the 8th Public Finance Management (PFM) Conference on November 5, 2025, at the Grand Royal Swiss Hotel, Kisumu. | Photo: Nation
Kenya National Highways Authority is contending with significant penalties and mounting legal disputes on several road projects.

The Kenya National Highways Authority (KeNHA) is facing Sh8.2 billion in penalties related to delayed or disputed road projects. The total value of ongoing project disputes has now surpassed Sh32 billion.

These figures highlight the growing financial and legal challenges facing Kenya’s road agency. Disputes often arise from variations, delayed payments, contract terminations and compensation claims by contractors and landowners.

KeNHA manages some of the country’s largest and most complex infrastructure projects. Delays in resolving disputes can slow down delivery and increase overall costs for taxpayers.

The agency has been involved in multiple high-profile projects in recent years, including bypasses, expressways and major corridor upgrades. While these initiatives have improved connectivity, they have also generated significant contractual disagreements.

Industry stakeholders have called for faster dispute resolution mechanisms and clearer contract frameworks to reduce such financial exposures in future.

The mounting penalties and disputes come at a time when Kenya continues to invest heavily in road infrastructure to support economic growth and regional trade.

KeNHA will need to balance aggressive project delivery with stronger risk management and contract administration practices.

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