Project News
Kenya Seeks China Help to Revive Stalled Projects
State requires Sh700 billion to complete ongoing road projects.
The Kenyan government is seeking financial assistance from China to complete 4,000 kilometres of ongoing road projects around the country.
According to the Cabinet Secretary for Roads Kipchumba Murkomen, the government requires Sh700 billion in the next three months to rescue the projects.
Of the amount required, Sh150 billion is classified as outstanding payments for ongoing works to upgrade various roads across the country to bitumen standards.
“We have engaged China for concessional facility of around Sh180 billion because the total portfolio of the work their companies have been awarded out of the total contract sum of Sh700 billion is Sh400 billion,” Murkomen said in an interview.
The CS, who has toured China three times to seek support, said he anticipated the funds to be disbursed by March to prevent the projects from stalling.
“President William Ruto has entered into a bilateral agreement with his Chinese counterpart Xi Jinping on the matter,” Murkomen said.
The two leaders met in the Great Hall of the People in China on October 23, during President Ruto’s state visit to China.
Murkomen said the government would not initiate any new road projects in the current financial years until the ongoing work has been completed.
The government, which is contending with serious cash flow problems, is having a hard time convincing contractors to continue work as they await payments.
In November, for example, Jiangxi Engineering Group stopped work on a section of the Kenol-Sagana-Marua dual carriageway over a pending bill of Sh900 million.
The Chinese firm claimed to have written to the Kenya National Highway Authority requesting the settlement of the bill but received no response.
RELATED: Chinese Firm Stops Work on Kenol-Marua Highway
The company said that the failure to settle the amount owed had affected its cash flow with suppliers of essential materials, leading to halted deliveries.
Weeks earlier, China Jiangxi Economic and Technical Cooperation Co., Ltd. stopped on-site work for the Koru-Soin Dam project citing pending bills.
The company, which started work after receiving Sh499 million from the State in August 2022, was demanding Sh846.5 million before resuming excavation works.
Several other projects are facing similar fate, leading the government to seek support from the Asian country as well as various donors to forestall a crisis.
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