Stalled SGR section costing taxpayers dearly

Taxpayers are incurring huge losses due to delayed construction of a section of the Standard Gauge Railway that was temporarily suspended by the court, the Court of Appeal in Mombasa heard on Thursday.

The two companies, Kenya Railway Corporation (KRC) and China Road and Bridge Corporation (CRBC) through their lawyers told the court that delayed construction is causing great financial losses to taxpayers.

“Expenses of running the sites and equipment charges which are not in operation are being met by the tax payers, said Cecil Miller, representing KRC.

Ndegwa Wamuti who was representing CRBC, told the court that since the construction of the railway stalled due to a court injunction, the tax payers have been subjected to unnecessary suffering.

Mr Wamuti also told the court that the matter would have been resolved amicably if the petitioners focused on compensation.

The lawyers told the court that the companies are making payments for the materials and labour but cannot work since the construction was temporarily suspended by the court.

African Gas and Oil Company Ltd and Miritini Free Port Ltd had moved to the High Court to halt the construction of a section of the SGR until hearing and determination of their compensation suit.

The company had stopped the construction of the government’s mega-project until it is paid Sh519 million awarded to it by the National Land Commission for running the project on its land.

In July 21, Lady Justice Anne Omollo ordered the government to compensate the two companies Sh1 billion.

Lady Justice Anne Omollo had ordered that a section of the construction work should stop until the government compensate the company.

The orders had blocked the government and railway contractors from “entering, constructing, excavating or demolishing” any structures on land belonging to the companies for 14 days.

Court of Appeal judges will deliver a ruling on November 25.