Kenya May Arrest Two Ministers Over Loss of Dam Funds, Star Says

(Bloomberg) -- At least two Kenyan cabinet secretaries are facing arrest for their alleged role in two dam projects through which public funds were misappropriated, the Star reported, citing people it didn’t identify.

The cabinet secretaries in the East African nation could face charges of negligence or conspiracy to steal public funds meant for construction of the dams in the Rift Valley, the Nairobi-based newspaper said Thursday.

The two dam projects by the state-owned Kerio Valley Development Authority will cost about $502 million, the agency said Thursday in a newspaper statement. It is partly financed through a loan from the Italian government, it said. A 15 percent advance payment was made to the contractor and both projects are on schedule for completion within the agreed period, according to the statement.

Kenyan authorities may arrest three county-governors for alleged involvement in graft and the Ethics and Anti-Corruption Commission is investigating another 12 of the East African nation’s 47 county-governors, the Star reported Feb. 21. Kenya has intensified efforts to cut corruption related losses in order to avail more funds to finance ambitious infrastructure projects.

To contact the reporter on this story: Eric Ombok in Nairobi at eombok@bloomberg.net

To contact the editors responsible for this story: David Malingha at dmalingha@bloomberg.net, Helen Nyambura

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