State risks Sh322m on delayed effluent treatment plant
The National Assembly has opened public participation for two bills which form part of the conditions attached to the Sh139 billion soft loan secured from the World Bank. FILE PHOTO | JEFF ANGOTE | NMG
A contractor hired to build an effluent treatment plant at Kenanie Leather Park in Athi River is demanding Sh322 million in unpaid dues from the government, saying that the overdue payment has delayed the completion of the project.
The Sh2.2 billion Common Effluent Treatment Plant was expected to be completed by July 1, 2022, but non-payment of several certified certificates has delayed the completion date.
“Accordingly, the contractor has scaled down manpower on the site. As of September 2022, the project had pending bills of Sh287.9 million, exclusive of interest on delayed payment amounting to Sh34.04 million,” the Trade, Industry and Cooperatives committee of the National Assembly said in a report to the House.
The construction of the CETP is jointly being undertaken by the Export Processing Zones Authority (EPZA) and the Kenya Leather Development Council (KLDC).
“Due to the lack of government funding from the financial year 2019/20 to date, EPZA has been unable to meet its contractual obligation for the work done,” said the committee in a report on the consideration of the Supplementary Estimates I for 2022/23 financial year.
The CETP project will also see the construction of two warehouses for tanneries at a cost of Sh695 million and two warehouses for leather goods manufacture at a cost of Sh499 million.
The development of the Kenanie Leather park, which sits on a 500-acre piece of land, will promote value addition for enhanced economic impact in terms of foreign direct investment inflows in export-oriented manufacturing.
The park will produce up to 10 million shoes and other leather accessories for export annually in what is expected to put Kenya on the global leather map.
Once completed, the project is expected to boost livestock farmers’ earnings and create employment for residents of Machakos county.
The leather park has the capacity to handle 150 tonnes of raw hides daily. With the completion of the stores, the government is looking for investors to occupy the available space.
Investors at the park will enjoy incentives extended to investors operating within EPZ.
