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HomeWorldKenya owes contractors $1.07 bln debts for road construction

Kenya owes contractors $1.07 bln debts for road construction

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Kenya’s government owes $1.07 billion (145 billion shillings) for certified works to road contractors and landowners, which is likely to delay ongoing projects, according to a local daily.

Local and foreign contractors are owed 50 and 60 billion shillings, respectively, Transport Cabinet Secretary Kipchumba Murkomen told Parliament.

The balance of 35 billion shillings is due to landowners whose properties were bought for road construction, the Business Daily newspaper reported, citing the official.

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The Ministry of Roads has an ongoing road portfolio of over 800 projects with a total outstanding cost of 763 billion shillings as of February 28, 2023, Murkomen stated.

He said most pending projects are either undergoing slow implementation or have completely stopped due to the government’s failure to provide resources to pay contractors.

The official disclosed that the ministry negotiated with the Roads Annuity Fund to release 12 billion shillings to pay some contractors.

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