15 November 2012

Kenya: Muthurwa Market Contractor Seeks Sh290 Million

THE Contractor of the multi-million Muthurwa market has moved to court seeking over Sh290 million from the government five years after the hawkers market was commissioned.

Ongata Works limited says in the application filed in court that the government- through the Ministry of Local Government has failed to honour its obligation by paying the balance of the works. The job also included the construction of matatu terminus.

The market was completed in March 2008 and was officially opened by President Kibaki. It was expected to remove hawkers from the Central business district to a confined area.

The project cost the government more than Sh611 million. The contractor says in the court documents the payments were to be made at various stages upon certification by the Ministry.

It took the company approximately one year and was officially handed to the Ministry. The company further says that it complied with the contract provisions and applied for the issuance of final accounts.

And after making contractual calculations, measurements and final claims, the amount due stood at Sh234,736,214. But over three years after the calculations and works certified as defect free, the Ministry is yet to pay the balance even though the contract stipulated that the amount would be paid within 30 days.

"The Ministry of Local Government has refused, failed and neglected to observe the above provisions of the contract and the plaintiffs claim remain unpaid several months after the contract came to a closure," reads part of application by Ongata Works.

The company's managing director Gibson Wambugu says in a sworn statement that they have made efforts to resolve the matter and even held meetings with technical teams in vain. The company is seeking Sh234 million plus interest amounting to Sh55 million from December 1, last year to October 31, 2012.

The amount could further increase if the contractors wish to be awarded a 3 percent interest on account of delayed payment until payment in full, is allowed.

Copyright © 2012 The Star. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.