Public Accounts Committee flags Ksh42M lost in Thiba Dam interest charges
By Faith Lagat, April 24, 2026The Public Accounts Committee (PAC) has raised concerns over the loss of millions of shillings in taxpayer funds through interest penalties arising from delayed government payments, with the Thiba Dam project cited as a key example.
The matter was examined during a sitting on Thursday, April 23, 2026, where the committee reviewed the 2023/2024 Auditor-General’s report on the State Department of Irrigation.
The committee, chaired by Tindi Mwale (Butere), heard submissions from Principal Secretary Ephantus Kimotho and senior officials from the State Department of Irrigation.
The Auditor-General’s report indicated that Ksh42.12 million was paid as accumulated interest to a contractor involved in the construction of Thiba Dam due to delayed payments.
“The costs were avoidable and were attributed to delay in honoring payments when due by the Project. In the circumstances, value for money amounting to Ksh43,122,375 could not be confirmed,” the report stated.
Members noted that the delays resulted in additional costs beyond the initial contract value, affecting project efficiency and public expenditure management.
Recurring penalties
Committee members raised concerns over repeated cases of penalties arising from delayed payments across government projects.
Edwin Mugo Mathioya MP questioned the scale of losses linked to such delays, stating: “The amount of money that this country has to pay for penalties is even more than the principal amount of some specific project. If a calculation of how much interest and penalties have been paid in this country, I’m very sure maybe it will hit a trillion Shillings.”
Chair Mwale noted that delayed disbursements from the National Treasury continue to affect several state departments and contribute to avoidable financial losses.
Treasury action
The committee indicated that it would engage the National Treasury to address delays in payments and reduce exposure to interest penalties in ongoing and future projects.
“This is an issue that needs to be looked at critically. As a watchdog committee, we are ready to engage Treasury to address the issue and prevent further losses of public funds,” said Mwale.
The Thiba Dam project, implemented in Kirinyaga County under the Mwea irrigation scheme, was designed to expand irrigated land and boost rice production. However, funding delays were cited as a factor that increased project costs.
The committee is expected to continue reviewing audit reports from other government agencies as part of its oversight mandate on public expenditure and accountability.