Compliance gaps flagged in County Industrial Parks Projects
EACC Deputy Director, Ethics Development and Monitoring, Mr Ben Murei (right), presents the Compliance Monitoring Report on behalf of CEO Mr Abdi Mohamud to Principal Secretary, State Department for Industry, Dr Juma Mukhwana.
25:09:2026: The Ethics and Anti-Corruption Commission (EACC) has identified significant compliance, governance, and financial management gaps in the implementation of the County Aggregation and Industrial Parks (CAIPs) projects across the country.
The findings are contained in a Compliance Monitoring Report presented to the Principal Secretary, State Department for Industry, Dr Juma Mukhwana, on September 24, 2026, at Social Security House, Nairobi.
The report was presented by EACC Deputy Director, Ethics Development and Monitoring, Mr Ben Murei, on behalf of the CEO, Mr. Abdi Mohamud. The Commission said the recommendations contained in the report are aimed at addressing identified weaknesses, sealing integrity loopholes and strengthening transparency, accountability and value for money in the implementation of the projects.
The compliance monitoring exercise was undertaken between March 16 and May 9, 2026, covering CAIPs projects across all 47 counties, with detailed engagements conducted in 11 sampled counties.
Among the key findings, EACC established that 16 of the 34 County Governments that had received the Kes250 million National Government conditional grant had not signed the required intergovernmental participation agreements. The Commission also found that key national and county governance structures had not been fully established and operationalised.
Weaknesses were further identified in project planning, with some counties failing to undertake the required concept development, feasibility and appraisal studies before commencement of projects. EACC noted that this contributed to challenges in site selection, value-chain identification and project sustainability.
The Commission also raised concerns over procurement and financial management. Some counties awarded contracts exceeding the approved Kes500 million allocation, while instances of irregular advance payments were identified. In one County, for example, Kes95.59 million was paid to a contractor before commencement of works, despite the advance payment not being provided for in the tender documents.
Construction delays, inadequate monitoring and evaluation, weak audit oversight and insufficient infrastructure to support operationalisation of the parks were also highlighted.
Dr Mukhwana acknowledged the identified gaps and reaffirmed the Government’s commitment to completing the projects, while commending EACC for its oversight role.
EACC has recommended, among other measures, the establishment and operationalisation of CAIPs governance structures, improved project planning and procurement controls, proper financial management, regular audits and stronger monitoring and evaluation.
The Ministry of Investments, Trade and Industry, the Council of Governors and County Governments are required to prepare an implementation plan addressing the findings and recommendations and submit it to the Commission within 30 working days.
EACC will continue engaging the relevant stakeholders to monitor implementation of the recommendations and support the mainstreaming of integrity and ethical governance in the CAIPs programme.
