Nairobi, July 20 -- The Kenya National Highways Authority (KeNHA) has incurred Sh8.2 billion in penalties on delayed payments to contractors in the financial year to June 30, 2025, even as project disputes pushed its contingent liabilities to Sh31.7 billion.

A latest report by the Auditor-General says that the Sh8.2 billion penalties and interest charges, tied to delayed settlement of pending bills, would have been avoided had KeNHA planned its affairs better.

KeNHA, in response to queries from the Business Daily, attributed the penalties to funding challenges, saying the interest arises automatically when certified works are not paid within the stipulated contractual period.

The State agency cited inadequate budgetary allocations and ...