$1.28 Million Per Km Mombasa Road Project Cost Alarms Experts

(MOMBASA, KENYA) – The Kenya Ports Authority is spending KES 8.3 billion ($63.85 million / SSP 415 billion) on a 1.4 kilometre road inside the Port of Mombasa, setting the cost at KES 5.96 billion ($45.85 million / SSP 298 billion) per kilometre and raising concerns over value for money.

KPA awarded the contract for “widening of Port Road from Gantry Workshop to Gate No. 18/20” in August 2024. Works were scheduled to finish this month. The cost per kilometre places it among the most expensive road projects in the country.

Recent road projects in Mombasa have cost far less. The Dongo Kundu bypass cost about KES 1.8 billion ($13.85 million / SSP 90 billion) per kilometre. The Kwa Jomvu to Mariakani Road cost KES 342 million ($2.63 million / SSP 17.1 billion) per kilometre. The ongoing Rironi to Mau Summit Road averages KES 807 million ($6.21 million / SSP 40.35 billion) per kilometre.

KPA says the road will provide an expressway from the Kilindini side to the second terminal, avoiding the crossing at Gate 18 Junction and the level crossing on the western side of the one stop centre parking. The authority made the statement in its 2024/25 annual report.

A review of contract documents shows about KES 1.6 billion ($12.31 million / SSP 80 billion) of the road budget has been set aside for contingencies and preliminary items. Experts have raised concerns about possible loopholes for wastage of public money.

The preliminary and general items have a KES 686.7 million ($5.28 million / SSP 34.34 billion) budget. They require the project contractors, Stecol Corporation and Miliki Development Company, to construct offices for themselves and engineers, buy high end vehicles and purchase at least 20 latest android phones.

The contract’s technical specifications require the contractor to provide, erect and maintain a furnished, air conditioned and equipped main office for engineers appointed by KPA.

The contract states that unless the offices are accessible by an existing paved road, the contractor must provide an access road at least three metres wide to the office, together with 100 square metres of covered car parking area, if the engineer’s representative requires it.

The contract adds that 10 mobile phones of the latest Android version must be provided for the employer’s exclusive use, and another 10 for the engineer’s representative. The contractor must pay all charges and fees and will be reimbursed on production of proof of payment.

KPA signed the two year contract on 21 November 2024.

The contract requires that toilets and washrooms be graded to “staff seniority” as part of equipping the engineers’ and staff offices.

It also says the contractor must provide 24 hour electricity and bottled water supply to the offices and allow for any water and electricity consumed and any statutory charges.

The costs of building and running offices are separate from facilitating the housing of engineers and other staff, either through high end hotels or by constructing staff houses. The contract states the contractor’s rates are deemed to include temporary accommodation for the resident engineer, assistant resident engineer, materials engineer, highway engineer, senior surveyor and three support staff during the mobilisation period. No separate payment will be made.

The contract also requires the contractor to provide brand new, diesel powered and air conditioned vehicles. These include a seven seater 4WD station wagon with a 3.0 litre turbo diesel engine, four 4WD double cabin pick ups and two 14 seater vans. The contractor must provide comprehensive insurance for all vehicles and competent drivers approved by the engineer during normal working hours and whenever required.

A structural engineer in the roads sector says these items most likely make up the KES 686.7 million ($5.28 million / SSP 34.34 billion) budgeted as preliminary and general items, which form about 8.2 per cent of the project value. The engineer said such expenses are mostly found in government contracts and are avoided when dealing with private companies and individuals.

The contract also has a KES 968 million ($7.45 million / SSP 48.4 billion) budget for variations and contingencies. Commercial law practitioner Ndong Evance flagged these clauses as possible areas of wastage. They raise the budget for unspecified items to KES 1.89 billion ($14.54 million / SSP 94.5 billion), about 23 per cent of the KES 8.3 billion ($63.85 million / SSP 415 billion) project.

Mr Ndong said the easiest way government tenders and contracts create wastage is by avoiding particularity and precision. He said the contract has a large number of general items that can hide a lot of human intervention.

The structural engineer, who asked to speak anonymously because he participates in government tenders, said construction of a kilometre of road can cost between KES 20 million ($153,846 / SSP 1 billion) and KES 250 million ($1.92 million / SSP 12.5 billion), depending on the site and work involved. He said regions such as Mombasa require extensive earthworks and excavation due to the soil and geography, but a normal road construction should not exceed KES 250 million ($1.92 million / SSP 12.5 billion) per kilometre.

The engineer said the list of costs in the project, which lacks a bill of quantities with particular costing, suggests bridge works dominate more than half of the project. He said with costings of over KES 4 billion ($30.77 million / SSP 200 billion) for bridge related works alone, it is unclear why the scope of works makes no reference to it.

Among the costs pointing to possible heavy bridge related works are concrete works with a KES 2.9 billion ($22.31 million / SSP 145 billion) budget, piling works at KES 687 million ($5.28 million / SSP 34.35 billion) and miscellaneous bridge works at KES 223 million ($1.72 million / SSP 11.15 billion).

The media has asked KPA to provide a broad overview of what the project entails, the works involved and whether there have been any changes to the contract cost. A major newspape also asked the agency and its managing director, Captain William Ruto, to provide an update on the current status of implementation, how much has been paid to the contractor so far with a breakdown of how the money has been used, and justifications for the budgets classified as preliminary, miscellaneous and variations.

Aaron Mutiso, KPA senior communication officer, responded on Wednesday. He said the authority acknowledged receipt of the email and that some questions were technical in nature and would require additional time to gather accurate and comprehensive information. He requested patience while the correct details were being compiled and said a complete and appropriate response would be sent as soon as possible.

KPA had not issued any further responses by the time of publishing. Questions sent to Mr Ruto’s mobile phone through text messages were not answered and calls to him went unanswered.

In the 2024/25 annual report, KPA explains the scope of the project as provision of an approximately 1.4 kilometre road extending from the Gantry Workshop to Gate 18 exit via the one stop centre. The contract refers to widening of port road from Gantry Workshop to Gate No. 18/20.

Mr Ndong said major legal risks in the contract revolve around areas where it avoids having particular information and has large budgets for variations. He argued that providing specific information on what is being costed would make it easy to assess overpricing and abuse. He said the contract provides a list of items and clauses that allow so much room for those involved, either contractors or engineers, to collude with government and justify the cost.

Under the contract, variations include omission of any work, inclusion of additional works and changes to sequence or timing of execution. All are projected to trigger a rise in cost. KPA budgeted KES 645.5 million ($4.97 million / SSP 32.28 billion) for variations, on top of KES 322.7 million ($2.48 million / SSP 16.14 billion) for physical contingencies.

Mr Ndong said variations have always been the most abused clause in government tenders because all stakeholders can collude. He said even things that should ideally not fall under variations through proper planning can be deliberately planned.

The commercial law practitioner also raised red flags in clauses addressing unforeseeable physical conditions and delayed payments.

KPA has already paid KES 1.67 billion ($12.85 million / SSP 83.5 billion) in advance payment to the contractors. In its 2024/25 annual report, KPA says the contract has been signed, advance payment has been paid and the completion period is 24 months. The report indicates construction was at 1.2 per cent by the end of June last year and that the project was expected to be completed this month.