Road contractor halts work over Ksh.230 million delayed payment

A road contractor in Kitui has halted construction demanding Ksh.230 million from Kenya Rural Roads Authority (KeRRA) for the completed work.

The contractor has written to KeRRA seeking an advisory on whether to proceed or halt the road construction terming the payment delays indicating that his liquidity has hit an all-time low.

The 35 km Nuu-Nguni Road contractor in Mwingi Central said that he has depleted all his reserve resources following the delayed payments despite raising three milestone certificates.

He has been off the site for seven months now since December 20 last year, derailing the completion time that was signed.

Completion period had been pegged at January 14, this year after the contract received an eight-month extension.

In a statement, ADMO Construction (K) LTD Managing Director Mohamed Adan said that out of the contract sum of Ksh.1.4 billion to tarmac the road, he has received a paltry Ksh.400 million from the government despite raising milestone certificates of Ksh.650 million.

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“I need the intervention of the government to release the remaining funds of the raised certificates to enable me to complete this project launched on June 30, 2017 by President Uhuru Kenyatta,” said Adan.

KeRRA Eastern Region Manager Eng Mbavu Sayo confirmed the status during the County Development Implementation Coordination Committee (CDICC) chaired by Kitui County Commissioner Thomas Sankei at the Mwingi Central DCC’s office saying that the road is at 75 percent complete.

“The remaining stretch is about three kilometres. Since I rely on my own funding, I sought project extension as I wait to see if I will be paid for the completed milestones,” said Adan.

Delayed payments coincide with the water scarcity in the region, much of which the contractor has been forced to drive over 29 kilometres to the nearest water source.

The low volume road has helped ease movement of people and goods in the area that is hampered during the rainy season. But payment delays could mean something else for the area residents.

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Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.
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