The Ethics and Anti-Corruption Commission (EACC) on Wednesday revealed that it has moved to court to block payment of Ksh137.5 million to fraudulent beneficiaries claiming to be legitimate fishermen whose economic livelihoods were disrupted by the construction of the Lamu Port.
In a statement, the EACC said the move follows a thorough investigation into allegations of fraud amounting to Ksh1.7 billion, of which the Ksh137 million in question is part.
The anti-graft body wants the court to issue orders stopping payment to 4,734 people observing that the investigations established that the claims were marred with irregularities.
“EACC is seeking to have the fraudulent list substituted with the validated list of genuine beneficiaries,” the anti-corruption agency said in its statement.
“The probe has identified genuine beneficiaries, ghost persons in the existing list as well as genuine fishermen who had been left out due to fraudulent practices.”
If the court grants EACC's prayers, it would save the government Ksh137 million, which will be allocated towards compensating deserving cases.
Lamu Port Compensation
In March 2023, the Kenya Ports Authority commenced the process of collecting, verifying, and validating signatures and bank account details from 4,734 fishermen as the agency geared up to complete the compensation.
The compensation was in accordance with a court order that ordered the agency to compensate affected individuals a sum of Ksh1.7 billion.
The court's directive stipulated that the allocated amount would be distributed accordingly: 65 per cent earmarked for direct cash compensation to the fishermen, and the remaining 35 per cent reserved to bolster the enduring viability of fishing activities within Lamu County.
The Port of Lamu, which was officially inaugurated by former President Uhuru Kenyatta in May 2021, is part of the flagship Lamu Port-South Sudan-Ethiopia-Transport (LAPSSET) project which is expected to contribute to the country's economic growth and facilitate the movement of goods along the corridor.
While launching the project, former President Uhuru Kenyatta emphasised that the project would play an instrumental role in connecting Kenya to South Sudan, Ethiopia, and the middle belt of Africa, thereby fostering enhanced regional trade and connectivity.
President William Ruto in June this year announced that his administration would build on the progress the Jubilee administration achieved in developing Kenyan ports.
Ruto further stated that his government would achieve this by leasing the operations and management of five critical ports through a Ksh1.4 trillion Public-Private Partnership (PPP) which he observed will revitalise the country’s maritime industry.
