Kajiado County Drops Sh2m Cess Claim Against Ngong Road Contractor in 2019 Resolution

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Nyakundi Report

Newsroom 1 min read

Kajiado County resolved a dispute with Japanese contractor World Kaihatsu Kogyo in March 2019 by abandoning its Sh2 million cess fee demand, enabling continuation of Ngong Road's second phase construction. The conflict arose when the county blocked material procurement last week, citing unpaid levies.

Kenya Urban Roads Authority (KURA) acting director-general Silas Kinoti confirmed the resolution, stating grant-funded projects like Ngong Road are exempt from local taxes. 'This is a grant-funded initiative, so cess fees do not apply,' he said, noting the county's awareness of the project's funding source.

The 2.42-kilometer upgrade, 36% complete, includes four vehicle lanes, pedestrian paths, and a dedicated bus lane under Nairobi's rapid transit system. Initiated in August 2018, the Sh2.3 billion project features intelligent traffic signals at key intersections.

A separate Sh2 billion contract for Ngong Road's third phase—extending from Dagoretti Corner to Karen Shopping Centre—was awarded to China Qinjian International Group (Kenya) in July 2018. This 9.8-kilometer segment is scheduled for completion within two years.

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