Summary

SAI Kenya conducted a performance audit of the Ministry of Water, Sanitation and Irrigation’s (the Ministry) measures to enable the continuity and timely completion of the Kenya Towns Sustainable Water Supply and Sanitation Program (the Program), a government initiative comprising 48 projects. The audit coverage period was from January 2016 to July 2022. The Ministry managed to ensure the continuity of the Program, with some projects completed as per the expected timelines. However, auditors identified a number of limitations that may hinder the full implementation of the Program: - failure to take program timelines into consideration during the processing of subsidiary loan agreements; - delays and erratic nature in processing of tax exemptions; - failure by the Ministry to provide timely access to land or wayleaves; - failure by the Ministry to ensure the timely approval of statutory approvals and licenses; - inefficiency in ensuring optimal realization of projects gains; - failure by the Ministry to ensure the preparedness of stakeholders, in order to allow for efficient Program implementation. SAI Kenya’s recommendations focused on addressing identified violations, such as streamlining the tax exemption process; avoiding duplications in oversight procedures in the payment processing; implementing a simplified direct payment channel between the implementer and the financier; mapping out all riparian land intended for future use, and acquiring key sites before commencement of any construction works.