Nairobi, Jan. 27 -- The Local Authorities Provident Fund (Lapfund) is on the spot over an unapproved Sh1.3 billion advance payment in a housing project, exposing weaknesses in its procurement processes.

Lapfund's management is accused of making the deposit to a contractor in the Bellevue Park Residences housing project even before works could be certified, raising concerns over prudence in use of the public funds.

The advance payment was part of Sh2.89 billion that Lapfund paid to facilitate construction at the Bellevue housing project by June 2025, shows an Auditor-General's report for the State entity.

"It was observed that an advance payment of Sh2,898,604,851 was made whereas the value of works certified as at 30 June, 2025 stood a...