In Summary
  • The new contract amount of Sh224 million exceeds the original contract amount by Sh29 million despite the project having been under construction since 2012 and is said to have  progressed above 80 per cent.
  • Officials from the ministry did not explain why a partly constructed market cost had gone above its original amount, only maintaining that there was no additional cost to the ministry following the latest change of contractor.
  • Construction began in 2008 and stalled after the first contractor, Square M was terminated 35 per cent into the project in March 2011, due to “unsatisfactory” performance.

A costly construction delay, contract wrangles and a looming legal battle over construction of the proposed Westlands market will see tax payers cough up more than Sh200 million more to complete the project, Sunday Nation can reveal.

The project whose initial cost of Sh195 million has already been used up, and has dragged for 10 years, was given to another contractor after the Ministry of Transport, Infrastructure, Housing and Urban Development suspended the second firm in a row that has spilled to the corridors of justice.

The new contract amount of Sh224 million exceeds the original contract amount by Sh29 million despite the project having been under construction since 2012 and is said to have  progressed above 80 per cent.

Late payments to Pyramid Construction Limited (now suspended), also saw the ministry pay another Sh31 million in interests to the contractor in March 2017, underlining the wasteful spending that has surrounded the market construction.

Officials from the ministry did not explain why a partly constructed market cost had gone above its original amount, only maintaining that there was no additional cost to the ministry following the latest change of contractor.

Urban and Metropolitan Development Secretary Enosh Onyango said the ministry had decided to terminate the second contractor, Pyramid Construction Limited after it proved slow in completing the facility.

“The delay has not been costly to the ministry in any way. The payment to contractors by the ministry is based on works accomplished and thus it does not attract any additional costs. 

"If at all there will be any losses to the government, they will be settled through retention funds and application of the liquidated and ascertained damages clause,” Mr Onyango wrote in response to our queries.

The project was first mooted in 2007 to put up a modern facility for city traders – a three storey structure with stalls, two lifts and a basement parking according to the ministry tender documents.

Began in 2008

Construction began in 2008 and stalled after the first contractor, Square M was terminated 35 per cent into the project in March 2011, due to “unsatisfactory” performance.

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