Auditor-General Exposes Brazen Corruption at Kenya Roads Board, Sends Management into Panic

Panic has gripped top management at the Kenya Roads Board following Parliament’s decision to order a comprehensive forensic audit that threatens to expose years of systematic looting and financial mismanagement at the institution.

The national assembly’s public investment committee on commercial and energy affairs has directed Auditor General Nancy Gathungu to conduct a sweeping investigation covering financial years 2020/21 to 2022/23, with a specific focus on tracing fuel levy funds disbursed to KRB and various road agencies.

At the heart of the storm is a staggering Sh5.5 billion in unexplained variances in fuel levy funds, money that was collected by the Kenya Revenue Authority, channeled through KRB, and supposedly distributed to road agencies across the country.

The audit report has revealed a shocking web of financial irregularities, with investigators discovering receivables from non-exchange transactions totaling Sh5.53 billion, including a Road Maintenance Levy Fund grant receivable of Sh5.08 billion from the Kenya Roads Board alone.

Former Director General Rashid Mohamed and his inner circle now face intense scrutiny over allegations they ran KRB like a personal fiefdom, with directors operating the parastatal as if it were their private entity.

Sources indicate Mohamed manipulated procurement processes for both KeRRA and KRB, receiving kickbacks from his preferred contractors who secured lucrative road tenders worth millions through dubious means.

Former DG Kenya Roads Board Mr. Rashid Mohamed

The scandal deepens with revelations that Mohamed distributed substantial funds without obtaining mandatory approvals from either the Board or the cabinet secretary.

Financial mismanagement was rampant, with KRB managers allegedly treating billions in road levy funds as personal piggy banks, depositing portions of the money in commercial banks to earn interest rather than disbursing funds promptly to road agencies.

According to insiders, Mohamed went to extraordinary lengths to avoid accountability, refusing to secure payment without providing proper documentation for payments to his associates.

He reportedly held KRB credit cards worth millions and commanded subordinate staff including at least one female employee who was allegedly sacked for refusing to comply with irregular instructions.

The procurement rot runs deep. Mohamed, working alongside then chairman Ahmed Mohamed, is accused of colluding with several board members including Phyllis Wakiaga, John Nyaguti, Charles Tirok, Julius Mwabu, Francis Theuri and Stephen Likiki to award road tenders worth millions through questionable processes.

Finance director Martin Agumbi stands accused of creating an accountability vacuum around the controversial fuel levy fund allocation.

Internal auditors who attempted to blow the whistle on these irregularities reportedly faced threats and intimidation, with some fearing for their safety after raising red flags.

The current Director General Chirchir Mohamed now finds himself under pressure as investigators discovered he withdrew funds under fictitious training programs that never occurred.

Contractors and consultants who worked with various invoices for completed work could not be traced, raising serious questions about ghost projects and phantom payments.

The Kenya Roads Board manages the Road Maintenance Levy Fund, a crucial fuel-based fund that collects Sh25 per litre on petrol and diesel sold in Kenya.

These funds are supposed to be allocated to national agencies like Kenya Urban Roads Authority, Kenya Rural Roads Authority, Kenya Highways Authority and to 47 counties countrywide for road maintenance and development.

High Court rulings have repeatedly intervened in disputes between national and county governments over the fund’s allocation, with counties asserting their constitutional right to the funds for maintaining local roads.

Civil society organizations and the Motorists Association of Kenya have consistently raised concerns about poor road conditions despite increased levies, putting pressure on government agencies to deliver value for money.

The brewing scandal has exposed what experts describe as a multi-faceted problem involving both systemic procedural failures and shrewd individual unethical acts.

With the alarming state of road infrastructure at the beginning of 2025, Kenyans are demanding answers about where their money has gone.

Parliament’s move to unleash the Auditor General on KRB signals a determination to get to the bottom of what many suspect is one of the most brazen corruption schemes in Kenya’s roads sector.

For the embattled bosses at KRB, the days of operating with impunity may finally be coming to an end.

The Ethics and Anti-Corruption Commission is expected to join the investigation as calls grow louder for full disclosure of loan terms, identities of lenders, and feasibility studies to allow for effective public and parliamentary oversight of KRB management.​​​​​​​​​​​​​​​​