Kajiado had blocked World Kaihatsu Kogyo from collecting building materials over unpaid cess fee.
The stalemate has since been resolved, paving the way for upgrade of the key infrastructure stretching from Ring Road junction to Dagoretti Corner.
Work on the second phase of Ngong Road has resumed after Kajiado County dropped its Sh2 million cess demand from a Japanese contractor undertaking the project.
The county last week blocked World Kaihatsu Kogyo from collecting building materials, claiming that cess fee amounting to Sh2 million had not been paid.
On Tuesday, Kenya Urban Roads Authority acting director- general Silas Kinoti told the Business Daily that the stalemate had been resolved, paving the way for upgrade of the key infrastructure stretching from Ring Road junction to Dagoretti Corner.
“We have talked to Kajiado County and explained to them that this is a grant-funded project that must get exemptions on taxes and levies,” said Mr Kinoti.
He, however, could not explain why Kajiado County wanted the contractor to pay cess fee, yet they knew the road is funded by a grant from Japan.
Levies
He noted that inasmuch as the county was looking for more revenues to fund its projects, works funded by grants are normally exempted from levies such as cess.
“It can’t apply in this case. The most important thing is that we have explained to them and they have understood,” he said. Work on 2.42-kilometre stretch which is 36 percent done so far started last August at Sh2.3 billion.
The scope of the work includes building four vehicle lanes as well as service lanes comprising pedestrian walks and cycling paths.
The design also provides for a special lane to be used exclusively by public service buses under the rapid transit system.
The road will also have intelligent traffic lights at major intersections.
The government awarded the Sh2 billion tender for the dualling of Ngong Road Phase three, running from Dagoretti Corner to Karen Shopping Centre, last July.
The 9.8-kilometre third phase will be constructed by China Qinjian International Group (Kenya).
Work on the busy road is set to end after two years.
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