Financial Implications for Stalled Public Building Projects

Abstract

The government of Kenya initiated a number of building construction projects so as to provide building facilities required for provision of basic services. However, most of these building projects were stalled at different stages of implementation hence made the government not achieve the intended objectives. Earlier studies have been carried out mostly on stalled building projects both in Kenya and in other countries but not particularly on the financial implications of stalled public building projects. This study therefore undertook a detailed financial analysis of stalled public building projects to determine their financial implications. A documentary analysis of 12 sampled stalled public building projects was used to accomplish the study objectives. The analysis was on secondary data of the projects, specifically regarding the amount of money spent on the projects before stalling and during the completion phase after the works resumed. The results of the study indicate that stalled public building projects result into wastage of public funds initially invested in the projects, increased public expenditure on completion and loss of public funds. It is therefore essential to put in place financial planning, cost management and control measures in the early stages of the project implementation in order to avert stalling.