Nairobi, July 10 -- The news that the government has paid more than Sh7 billion in penalties to investors behind the Lake Turkana Wind Power project is the latest example of badly negotiated deals that end up exposing the taxpayer to huge losses.
The payment may be legal. But in terms of opportunity cost, payment of a contractor claim running into billions for no value or service is a national scandal.
'How Kenya paid Sh7 billion for non-existent power' was the headline of a story reported by the Daily Nation yesterday. We lose billions in taxpayer money every year in payment of claims and pending bills arising from poorly negotiated contracts and lopsided agreements with investors.
Here is a brief background to this saga.
According to ...