Interest payments for project delays and late payment of claims are bleeding taxpayers of billions of shillings, a parliamentary report shows. For Hazina, the contractor in July 2019 claimed Sh234 million interest on delayed payments, a figure that continues to rise as it remained unpaid by end of June. “This has resulted in the loss of public funds due to escalation of costs and payment of interests on delayed payments. The Kenya Investment Authority ended up paying Sh10.6 million for a Sh217,152 contract owing to delayed payments. The committee asked the National Treasury to release funds meant for claim settlement to avoid nugatory expenditures in the form of interest payments.

Source: The Star July 09, 2020 02:02 UTC