Sh360m donor money lost as Kisumu leaders dwell in wrangles

Kisumu, Kenya - The wrangles among leaders in Kisumu County have led to the loss of Sh360 million in donor funding for slum upgrade.

The French Development Agency (AFD), which is the sponsor of the initiative, has withdrawn the funding after the county government failed to strike an agreement with the local residents on how to compensate those whose property would be affected by the ongoing slum upgrade.

The initiative is part of the Sh4 billion Kisumu Urban Project which aims to give the lakeside city a facelift.

The current stalemate now means Kisumu’s Nyalenda residents will now miss a bitumen road linking Nanga and Kachok trading centres, alongside the infrastructural development associated with the initiative.

The construction work was to kick off this August and end in September 2016.

AFD has already communicated to the county government about the funding withdrawal.

The problem started after about 300 families declined to give space for the upgrade project demanding for compensation from the county government.

The local administration had instead insisted the residents had encroached road reserves and would not be paid to quit.

The donor reverted the money when local residents refused to give way for contractors to proceed with the work.

Kisumu City Manager Doris Ombara confirmed the situation.