KPA sued over Sh232m in pending bills - Beaking Kenya News

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Saturday, 1 August 2020

KPA sued over Sh232m in pending bills

Trucks from the Mombasa Port go through inpsection at Bonje.

Four firms have sued the Kenya Ports Authority for failure to pay them their dues after the successful completion of projects under tenders they won.

The four firms, Source Logistics (EA) Limited, Outback Investments Limited, Grand Logistics Limited and Dicom Engineering Limited are demanding a total of Sh232.2 million from KPA.

Source Logistics was in 2019 awarded a tender to undertake excavation and concrete works at the railway crossing at Shimanzi next to Gapco Oil Terminal.

The tender was worth Sh64.2 million and KPA paid part of the money and remained with a balance of Sh20.5 million.

Outback claims payment of Sh71.1 million, which is an outstanding balance plus a 15 per cent interest.

Grand Logistics was awarded a contract worth Sh248.5 million some of which were paid by the authority.

The firm claims an outstanding balance of Sh72.4 million plus a 15 per cent interest.

Dicom Engineering was awarded a Sh262.9 million tender, part of which has already been paid to leave an outstanding balance of Sh68.2 million plus a 15 per cent interest.

Source Logistics, in court papers seen by the Star, says they are not able to pay their suppliers and workers because of the delay in payment of their full amount by KPA.

They say they risk being sued because of that.

The Covid-19 pandemic has further compounded their dire financial situation.

James Gereza, a director at the company, said in an affidavit sworn on June 17, said they borrowed money from a financial institution and they are now being hounded for repayment.

Gereza said he risks losing his motor vehicle which he had used as a security guarantee for the loan advanced to the company.

“Already, one of the creditors that is Ngao Credit have instructed Kiriiyu Merchants Auctioneers to repossess my vehicle,” said Gereza.

The firms say some of the other firms that have done business with the authority have already been paid in full for their works, a claim that the board neither confirmed nor denied.

Asked to comment about the claims of selective payment by the authority on Wednesday, KPA chairman Maj Gen (Rtd) Joseph Kibwana said he will look into the claims after getting in touch with the relevant departments.

“(I) Will get the answer from the appropriate office dealing with pending bills,” said Kibwana in a text message.

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