A recent investigation has uncovered that the Industrial Development Corporation (IDC) lost Sh74 million in a controversial investment involving Kenyan boats that, according to the findings, never actually existed.
The probe, conducted by a major Sunday publication, has revealed significant lapses in due diligence and oversight within the state corporation, raising serious questions about financial management and accountability.
The funds were reportedly allocated to a project purportedly aimed at boosting local maritime industries by financing the acquisition and outfitting of several fishing and transport vessels.
However, deeper scrutiny has shown that the boats in question were phantom assets, with no physical evidence of their existence, delivery, or operation.
Sources close to the matter suggest that IDC officials relied on unverified documents and supplier assurances without conducting proper field inspections or asset verifications.
This oversight allowed the fraudulent transactions to proceed unchecked, resulting in the loss of millions of shillings from public coffers.
The investigation also highlights concerns over the involvement of intermediaries and contractors whose credentials and track records were not adequately vetted.
Several key individuals linked to the procurement process have reportedly been questioned as authorities seek to trace the flow of funds and identify those responsible for the irregularities.
The financial loss is not only a blow to IDC’s balance sheet but also undermines broader efforts to promote industrial development through strategic investments. IDC, which plays a critical role in financing projects that support Kenya’s economic growth, now faces heightened scrutiny from government watchdogs and the public alike.
Calls for urgent reforms in procurement policies and stronger internal controls have intensified following the revelations. Stakeholders are urging for transparent investigations and accountability measures to prevent similar occurrences in future projects.
The government has pledged to take decisive action against any individuals found culpable and to recover the lost funds. Meanwhile, IDC has committed to tightening its monitoring systems and enhancing transparency in all its investment dealings to restore public trust.
Written By Ian Maleve
