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HomeNewsNHIF Car Park Construction: Budget Ballooned by Ksh.3B

NHIF Car Park Construction: Budget Ballooned by Ksh.3B

NHIF Car Park Construction: Budget Ballooned by Ksh.3B

The Public Investments Committee (PIC) of the National Assembly, focusing on Social Services, Administration, and Agriculture, is presently examining claims of improprieties related to the issuance of loans and the inflation of costs amounting to billions of shillings within the National Health Insurance Fund (NHIF).

The committee is expressing specific worry regarding a substantial 340 percent rise in the expenses associated with building a multi-story car park in Nairobi. They are currently urging the parastatal to furnish a comprehensive clarification for the notable escalation in construction expenditures.

On Tuesday, members of the committee visited NHIF’s facilities to examine the construction of the car park, which saw its initial cost of Ksh.900 million escalate to Ksh.3.9 billion. Numerous individuals criticized the structure, deeming it unsatisfactory.

The committee additionally declared that the expenses accrued lacked justification, adding that those implicated in the construction planning should face arrest.

“That was a whooping thuggery; there was no value for money. They (planners) should all be in jail and not interacting with Kenyans,” PIC Chair and National Assembly Majority Whip Emmanuel Wangwe said.

As per the Auditor General’s findings in the report covering the period until June 30, 2016, a budget of Ksh.900 million was allocated to the entire project in May 2002.

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Upon its conclusion in 2008, a total of Ksh.3.4 billion had been utilized for the project. Additionally, expenses of Ksh.626.6 million and Ksh.4.7 million were further accrued during the project.

“The project had been delayed and the prolongation in the contract period is what caused the escalation,” NHIF CEO Elijah Wachira said.

Previously, the committee went to the contested area in Karen, where NHIF and two other entities assert ownership. The committee has additionally extended an invitation to the Directorate of Criminal Investigations (DCI) to provide insights into the ongoing investigations regarding the dispute over ownership.

The committee was also shocked to learn that the State parastatal has not fenced the land despite a 2016 court order ordering it to do so.

NHIF was further pressed to clarify Ksh.1.4 billion spent on consultants for feasibility and design works.

“How come NHIF paid Ksh.1.4 billion for works that did not take off? We will be asking NHIF to explain,” Wangwe stated.

The committee has scheduled a session on March 13 to engage with NHIF regarding the findings and to seek clarity on the issues uncovered during the investigation.

NHIF Car Park Construction: Budget Ballooned by Ksh.3B

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