Kenya Ferry Providers (KFS) is as soon as once more on the spot for failing to account for Sh1.eight billion it used to purchase two ferries from Turkey.

In accordance the Auditor-Basic’s report for the monetary yr ending June 2018 tabled in parliament, KFS was unable to substantiate the validity of the constructing and provide of the ferries and the accuracy of the associated fee.

In his report, Mr Edward Ouko mentioned KFS made a down cost of Sh598 million to the native appointed agent in August 2015, however didn’t withhold the six per cent Worth Added Tax (VAT) of Sh35.eight million and one other 20 per cent withholding tax totalling to Sh119.6 million.

The Auditor-Basic faulted KFS for failing to stick to the skilled recommendation of Kenya Income Authority to topic funds to the above taxes.

The report mentioned regardless of a signed settlement dated June 27, 2015, indicating that the brand new ferries had been to be delivered after 17 months, that they had not been delivered throughout the conduct of this audit in November final yr.


The Auditor-Basic’s efforts to get a affirmation of the precise quantity the provider had acquired from KFS and the excellent stability had been additionally fruitless as an electronic mail to the Turkish provider, dated January 9, 2019, was not responded to.

“Within the gentle of the foregoing, it has not been attainable to substantiate the validity, accuracy and completeness of the constructing and provide of two new ferries at a value of Sh1.5 billion paid to the contractor as at June 2018,” reads the audit report.

Verification of the bid analysis course of revealed that the contract was awarded to a bidder who was ranked fourth throughout technical analysis, however no rationalization was supplied as to how he was finally awarded the job.


The technical analysis report had indicated that the successful bidder was to produce Roll on/Roll off ferries and that lifeless weight at designed draft was 490 tonnes, however a assessment of the successful bidder’s tender doc revealed the bidder didn’t present this data.

The KFS can also be on the spot over procurement of weighbridges at a value of Sh26 million, which aren’t used.

The report mentioned the weighbridges, which had been put in on each side of the Likoni channel, had remained idle since their set up.

The company informed the Auditor-Basic that the weighbridges had been a management measure to reinforce security by estimating the load of automobiles boarding ferries on the channel.