PENDING BILLS

City Hall to clear KURA Sh300 million debt

County pledged to pay from its second supplementary budget for the financial year ending June 30, 2022

In Summary
  • The county government in 2018 committed Sh900 million for the Sh2.87 billion project but had only paid Sh600 million.
  • The project, under the Nairobi Regeneration Plan, was launched in May, 2018 and was to cover 38 roads, all in Eastlands area covering 11 constituencies in Nairobi.

 

Nairobi Governor Ann Kananu at City Hall on January 23
Nairobi Governor Ann Kananu at City Hall on January 23
Image: MAUREEN KINYANJUI

Nairobi county has committed to clear long standing Sh300 million debt owed to the Kenya Urban Roads Authority.

The debt is for the Nairobi Eastlands roads regeneration project.

The roads covered by the project include, Komarock, Harambee Estate Sacco, Eastern Bypass — Kayole Spine, Donholm Phase V and VIII , Eldoret and Nyasa.

The county government in 2018 committed Sh900 million for the Sh2.87 billion project but had only paid Sh600 million.

The national government was to contribute Sh1.87 billion for the project.

Governor Anne Kananu's administration has pledged to clear the pending bill by allocating Sh300 million in its second supplementary budget for the financial year ending June 30, 2022.

This was part of Sh1.4 billion towards payment of pending bills for suppliers and contractors from the Sh2.51 billion supplementary budget passed by the county assembly last month.

"Sh300 million be set aside for settlement of a pending bill owed to Kenya Roads Urban Authority,” reads the budget statement.

Kura Corporate Communication assistant director John Cheboi confirmed that the state agency is still owed Sh300 million by City Hall.

He said the county had not been clear on when they planned to clear the debt despite the project being completed more than a year ago.

We have been waiting for them to honour the pledge because the project was a presidential directive,” Cheboi added.

The project was launched in May, 2018 and was to cover 38 roads, all in Eastlands area covering 11 constituencies in Nairobi.

However, works began in September, 2018 with the entire project expected to cover 80.3 kilometres.

The project was divided in three with each given separate one year contracts.

The contract for Lot one, covering 32km of road network was awarded to Stecol Corporation at Sh950 million.

Lot two, which covered 25.5km, was awarded to China Roads and Bridges Corporation at Sh1.01 billion.

Lot 3, covering 22.8km at Sh895 million, was awarded to China Wu Yi.

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