Laikipia faces claims worth millions for paused works
Workers at a road construction site in Nyahururu town in April. The new administration has suspended several infrastructure projects started by former Governor Ndiritu Muriithi.
What you need to know:
- The standoff could see the county administration lose millions of shillings following the suspension of the projects that were aimed at improving 11 towns and the multi-billion equipment and vehicle leasing programme.
- The works under the smart town’s initiative of former Governor Ndiritu Muriithi were to be funded through an infrastructure bond worth Sh1.16 billion.
- However, on September 6, the acting Land, Infrastructure and Urban Development chief officer Peter Macharia wrote to the consultant on the projects asking him to urgently suspend works.
The county government of Laikipia is in a standoff with contractors who were hired by the previous regime to work on multi-million development projects.
The standoff could see the county administration lose millions of shillings following the suspension of the projects that were aimed at improving 11 towns and the multi-billion equipment and vehicle leasing programme.
The works under the smart town’s initiative of former Governor Ndiritu Muriithi were to be funded through an infrastructure bond worth Sh1.16 billion.
However, on September 6, the acting Land, Infrastructure and Urban Development chief officer Peter Macharia wrote to the consultant on the projects asking him to urgently suspend works.
“Kindly but urgently suspend all works, supervisions, construction and consultancy for 21 days from the date of this letter. Accordingly, inform the contractors of the said suspension of works,” read the letter.
The action could result in the county paying the contractors up to Sh600 million in claims for the work so far done plus idle time for their equipment and deterioration of works as stipulated in the contracts.
The devolved unit is continuing to pay millions of shillings for over 100 leased vehicles and road construction equipment that were grounded immediately after the new administration assumed office.
In correspondence seen by Nation, the county government has stated that it has no money for the projects and accuses the contractors of failing to carry out due diligence on the county’s ability to pay them.
“You should expect to receive and deal with the many claims which we think will be submitted by the various parties to the various contracts,” the consultant Mr Ndegwa Muturi said in response to Mr Macharia’s letter warning that while the contract allows the county government to suspend or terminate a contract, it will be at a heavy price.
