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Written by

Okinda Benjamin

Jun 28, 2026

5 min read

​​​​​​​Kenya loses Sh600bn annually to graft in mega projects, report warns

"The report said infrastructure projects fuelling graft in Kenya."

​​​​​​​Kenya loses Sh600bn annually to graft in mega projects, report warns background
​​​​​​​Kenya loses Sh600bn annually to graft in mega projects, report warns

Kenya is losing more than Sh600 billion annually through corruption, stalled projects and poor management of major public infrastructure projects, a new report by Transparency International Kenya (TI-Kenya) has revealed, exposing deep governance failures in some of the country's flagship developments.

The report, Corruption Risk Assessment of Infrastructure Projects in Kenya, found that secrecy in procurement, weak oversight mechanisms and inadequate public participation have left major projects vulnerable to corruption and financial losses.

The assessment examined three major projects — the Standard Gauge Railway (SGR), the Kiambu Civil Servants Housing Scheme and the Vihiga Affordable Housing Project — and found varying degrees of corruption risks across all of them.

The SGR recorded the highest corruption risk score of 4.49 out of five under the Infrastructure Corruption Risk Assessment Tool (ICRAT), placing it in the "very high risk" category. The report attributed the score to weak grievance mechanisms, limited public disclosure of project costs and loan terms, opaque procurement processes and non-transparent community engagement.

The report further noted that the railway project, largely financed through Chinese loans and executed by external contractors, has raised concerns about long-term debt sustainability and potential conflicts of interest.

The Kiambu Civil Servants Housing Scheme, initiated under former President Uhuru Kenyatta's Big Four Agenda, recorded a moderately high corruption risk score of 3.24. Transparency International cited conflict of interest in procurement, environmental planning concerns and inconsistencies between budgeted and actual expenditure.

The Vihiga Affordable Housing Project was also found to have advanced without critical impact assessments and exhibited weaknesses in project documentation and oversight.

According to TI-Kenya, several mega projects are often introduced into government plans without adequate feasibility studies, public scrutiny or sufficient evidence of economic viability. Once approved, the projects gain institutional backing that makes them difficult to reverse even when concerns emerge over their viability.

"This is where the real loss happens," TI-Kenya Executive Director Sheila Masinde said, arguing that corruption is deeply embedded in the earliest stages of infrastructure planning and approval.

The assessment, conducted between September 2025 and March 2026, relied on open-source data analysis, access to information requests, fact-finding missions and stakeholder consultations.

President William Ruto has repeatedly described corruption as a major obstacle to national development, saying graft undermines service delivery and deprives citizens of the benefits of public investments.

"Corruption is a threat to the country's progress," President Ruto said previously, adding that the government has intensified digitisation of public services to reduce opportunities for graft and improve transparency.

The findings are likely to renew debate over public spending and accountability, issues that featured prominently during the Gen Z-led protests that erupted in June 2024. Although initially sparked by opposition to the Finance Bill and proposed tax increases, the demonstrations quickly broadened into demands for greater transparency, prudent management of public resources and an end to corruption and wasteful government expenditure.

Transparency International Kenya has recommended stronger institutional accountability, greater transparency in project financing and contracting, enhanced public access to information and rigorous feasibility assessments before infrastructure projects are approved.

The organisation warned that unless governance weaknesses are addressed, Kenya risks continuing to lose billions of shillings in public investments while critical development needs remain unmet.

 

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