Funding hitch delays Sh281m Lokichoggio airport upgrade

Treasury

The National Treasury building in Nairobi. FILE PHOTO | NMG

Funding challenges have delayed the completion of the Sh281 million Lokichoggio airport upgrade, delaying plans by Kenya Airports Authority (KAA) to open up the facility for use by larger aircraft.

Lokichoggio Airport serves as a key hub for humanitarian workers and suppliers for the expansive Kakuma refugee camp, which is located about 94 kilometres from the facility.

Works on the project, which started in November 2020, have stalled for the last year after the contractor — Amamak Limited — abandoned the site demanding pending payments.

The work involves the rehabilitation of the runway, taxiways and apron, and was supposed to be completed by November 2021, a year after the contract was awarded to Amamak.

“The client has totally and until now has refused to honour our payment,” said Amamak Limited director Mohamednoor Mohamed in a letter to the KAA dated October 12, 2022.

So far, only 20 percent of the work has been completed, despite the project consuming Sh105 million, which is half of the total projected outlay.

KAA corporate communications manager Angela Tilitei said the project stalled due to non-performance from the contractor, without divulging further details on the dispute.

“The Lokichoggio airport project stalled due to non-performance and destruction of the site by the contractor on March 6, 2022,” she said.

The contract document signed by the two parties shows that the contractor was to do site clearing and topsoil stripping, runway, taxiway and apron earthwork as well as culvert and drainage works, among others.

As part of the agreement, the KAA was expected to pay the contractor Sh20 million in interim payment 30 days after a payment certificate had been signed by the engineer.

The contract further states that KAA may without prejudice to any other remedy for breach of contract, by one month’s written notice sent to the contract or terminate the contract in whole or in part.

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