The Roads and Civil Engineering Contractors Association of Kenya (RACECA) has called upon the government to honor its part of the deal by paying the contractors for the works contracted for.
RACECA who fear laying off over 100,000 employees has faulted the budgetary allocation to the authorities terming it “not adequate” considering that over Sh20billion for certified works is owed to contractors for either complete or on-going contracts.
The Cabinet secretary for Transport, Eng.S.Kamau was last week questioned over the money allocation for roads projects where the Kenya Engineer reported on whether the funds should go to the counties or to the three authorities.Read:To fund the Road Authorities or the County Governments?
According to RACECA, the law currently empowers three road authorities namely Kenya National Highway Authority (KeNHA), Kenya Rural Roads Authority (KeRRA) and Kenya Urban Roads Authority (KURA) to enter into road construction contracts within their respective jurisdiction areas.
The contractor authority has thus called upon the government to fund the authorities that they may pay the contractors with whom they entered into contract. A number of on-going projects have been suspended for lack of payment to contractors and this is likely to escalate.
”There is real danger that if the matter is not resolved urgently, a number of local contractors will be pushed into financial defaults with attendant consequences to other economic sectors…”,says RACECA in a statement.
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