Kimwarer Dam was expected to cost $214m (£172m), a statement from the presidency said.

The president had asked a team to look into the building of two dams in Elgeyo Marakwet County, in western Kenya, after a corruption scandal broke in July over the awarding of a contract for their construction.

The investigation found that no reliable feasibility study had been conducted for Kimwarer Dam, no thought given to the compensation that would need to be given to residents in the area that would be flooded and the technical design was problematic.

The second dam - Arror - was found to be economically viable but some changes would have to be made to make it more affordable.

The dam scandal led to the sacking of Henry Rotich as finance minister. He has since denied charges of abuse of office in relation to flouting procurement procedures in awarding the contract.

Henry Rotich pleaded not guilty to corruption charges linked to the awarding of a contract for the construction of the two damsImage caption: Henry Rotich pleaded not guilty to corruption charges linked to the awarding of a contract for the construction of the two dams