A major highway construction project in Kenya has ground to a halt after the lead contractor formally notified the government of a full work suspension, citing non-payment and other unresolved contractual disputes totalling hundreds of millions of dollars.
“The decision to suspend the works is regrettable but stems from the repeated failure of the employer to fulfill its contractual obligations,” wrote Wang Ding Tao, the contractor representative overseeing the KES 43 billion Kenol-Sagana highway improvement project, in a November 17 letter addressed to the Kenya National Highways Authority.
The suspension follows a 21-day notice period that expired without resolution of KES 900 million in late payments from the government, Wang said.
The lack of payment has left the contractor unable to pay employees or purchase needed construction materials like fuel, forcing key suppliers to cut off deliveries to the project site.
“It is our sincere hope that the Employer expeditiously addresses these issues, allowing for the prompt resumption of the project,” Wang wrote. “We remain committed to the successful completion of the project and trust that this suspension serves as a catalyst for swift resolution.”
The Kenol-Sagana highway project, launched in 2021, aimed to ease traffic and boost trade by expanding a critical transportation artery linking the capital of Nairobi with northern and eastern regions.
The suspension puts completion of the high-profile project in jeopardy.
