Thwake dam delays cost tax payers billions
Eastern
By
Irene Githinji
| Apr 30, 2026
Delays in the construction of the Thwake Dam have cost taxpayers billions, with an audit revealing a 32 per cent price escalation to Sh48.9 billion.Auditor General Nancy Gathungu flagged the increase as a breach of legal variation limits, warning that delayed payments have also driven up interest costs.
By July last year, the project had already consumed at least Sh53 billion.The audit for the 2024/25 financial year further revealed delays in securing land ownership documents, exposing the government to legal risks and potential encroachment.
This includes Sh3.53 billion spent on acquiring over 9,000 acres for the project and Sh468.14 million in avoidable interest paid to the contractor due to delayed disbursements by the National Treasury.The report also noted that no construction activity had taken place at the site for a year, with staff having left, raising doubts about the project’s completion timeline.
Gathungu warned that continued delays could lead to further cost escalations due to changing market rates, while also heightening the risk of disputes and legal claims.She noted that the price variation contravenes the Public Procurement and Asset Disposal Act, which caps contract variations at 25 per cent of the original cost.
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The Thwake Dam project, launched nine years ago, is a key government initiative aimed at addressing water shortages in Kitui and Makueni counties, as well as supporting irrigation and generating up to 20 megawatts of hydropower.
Initially valued at Sh37 billion under a 2017 contract funded jointly by the government and the African Development Bank, the project was scheduled for completion in November 2022.However, multiple extensions have since been granted, with the latest pushing timelines further amid rising costs and uncertainty.