A contractor building a paediatric emergency and burns management centre at the Kenyatta National Hospital (KNH) has abandoned the site over a Sh184.3 million debt, leaving the Sh2.9 billion facility undone more than five years after the contractual deadline.
Auditor-General Nancy Gathungu said the outstanding amount includes Sh103 million in certified but unpaid construction claims, Sh69.4 million in accrued interest, and Sh11.9 million owed to the project consultant.
This exposes a breakdown in the execution of the contract and in the management of public projects at one of Kenya’s flagship health infrastructure investments.
It also raises fresh concerns over cost escalation, idle capital, and the risk of further financial exposure if the dispute is not resolved.
‘Furthermore, the loan agreement with the external financiers expired on April 30, 2025, and no evidence was provided to confirm continued commitment to funding the project. In addition, the contractor vacated the site, citing non-payment of certified claims under IPC (Interim Payment Certificate) number 15,’ Ms Gathungu said.
Ms Gathungu had previously raised concerns about the same project in her 2024 audit, warning that delays had resulted in avoidable interest charges that could instead fund medical equipment purchase or doctor recruitment.
Treasury has compounded the uncertainty by cutting the project’s budget by Sh900 million in the current financial year, reducing the allocation from Sh2.1 billion to Sh1.2 billion.
The project was awarded on August 20, 2018, with a contract sum of Sh2,959,511,555. The original completion date of August 20, 2020, was later revised to 2023.
Despite multiple extensions granted at the contractor’s request, the facility was still incomplete as of December 2025, highlighting ongoing implementation issues.
‘The value for money incurred on the construction of the Paediatric Emergency and Burns Management Centre could not be confirmed,” said Ms Gathungu, a standard audit qualification signalling that public expenditure has not resulted in a usable asset.
The 214-bed facility was designed to include 82 general ward beds, 14 intensive care unit (ICU) beds, and six high dependency unit beds for burn patients, as well as 82 general ward beds, 24 ICU beds, and six high dependency beds for paediatric emergencies.
KNH’s paediatric department currently treats an estimated 60,000 to 80,000 children annually across its emergency, inpatient, and outpatient services, while the existing burns unit admits around 1,200 patients per year.
Without the centre, the cases continue to be managed in a general emergency facility, which is not designed for specialised treatment, further complicating infection control and increasing pressure on overstretched resources.