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KPA Suppliers Head To Court Over Payments

KPA Suppliers Head To Court Over Payments

Four firms are up in arms against the Kenya Ports Authority [KPA] management over pending payments for contractors and suppliers.

The companies accuse KPA  management of making  payments selectively through the KPA board of directors which is headed by it's  chairman Major General (Rtd) Joseph Kibwana.

They are pointing an accusing finger at controversial KPA General Manager Finance Patrick Nyoike who is currently facing graft charges in court..

The companies have moved to court to demand for their payment.

Through Richard Ongegu, an advocate of the high court, under certificate of urgency they said the firms are mainly on contract work.

He said despite the firms having engaged their resources and having completed the awarded tender projects, KPA has declined to pay them.

According to documents from KPA head of litigation and disputes signed on behalf of General Manager board and legal service by John Turasha the acting General Manager Finance, General Manager Infrastructure and development and head of procurement have been asked to provide details of the firms.

The Source Logistics [EA] Limited had won a contract worth Sh 64.2 million but was paid Sh 20.5 million

The firm is demanding the pending amount with 15 per cent inertest.

Outback Investment Limited claims outstanding payment of 71.1 million and wants the full amount with 15 per cent interest.

Grand Logistics Limited is demanding for Sh 72.4 million against an outstanding amount of Sh 248.4 million.

Some of the contractors and suppliers argued their pending payments are not the first but second at the port.

They said they are wondering what the board has got to do with payment of contractors and suppliers arguing no payments can be done without the issuance of a certificate of completion of work done through the inspection committee.

The contractors and suppliers said some of them took loans from banks which want to auction their assets as they cannot service the loan due to non-payment of their dues by the authority.

In his letter the KPA official demanded for more details to able to make a compressive response to the firms’ demands and defend the authority from the suit.

In addition Turasha had asked the heads of departments to avail him with necessary documents in support of the brief for their further action.

He noted in the letter to the heads of departments that all four suits seek for orders for payments of claimed outstanding contractual amount each plus 15 per cent interest.

On his part, KPA Major General (Rtd) Joseph Kibwana said he will follow up the matter and get appropriate answers from those mandated to deal with suppliers and contractors.

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