Kitui road contractor demands Sh 230M in delayed payment

Kitui road contractor demands Sh 230M in delayed payment

ADMO Construction (K) LT, a road contractor in Kitui has halted construction demanding Sh 230million from Kenya Rural Roads Authority (KeRRA) for completed works before returning to site.

The ADMO Construction (K) LTD Managing Director Mohamed Adan has written to KeRRA seeking an advisory whether to proceed or halt construction of the 35 km Nuu-Nguni Road terming the payment delays an indicator that his liquidity has hit an all-time low.The road project is currently 75% and the remaining stretch is about three kilometres

The contractor argues that the road project in Mwingi Central has depleted all his reserve resources following the delayed payments despite raising three milestone certificates and called on the government to expedite his dues.

Call for patience

The delay saw the contractor leave site for seven months from December 2020 to June 2021 further complicating the completion period of the road pegged at January 14, 2020 despite getting a time extension for eight months to complete the works by September 2020.

Mohamed Adan said that out of the contract sum of Sh 1.4 billion to tarmac the road, he has received a paltry Sh 400 million from the government despite raising milestone certificates of Sh 650 million.

“I need the intervention of the government to release the remaining funds of the raised certificates to enable me 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 and has called for patience from the contractor as the matter is escalated to the relevant organs for action.

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