NSSF rejects proposal to pay Chinese contractor Sh1.8bn for city tower

National Assembly Public Investments Committee members on a tour of the Hazina Trade Centre building project last week. photo | jeff angote  

By BONFACE OTIENO

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Summary

• NSSF says the Public Works ministry will determine the rightful share owed to China Jiangxi.
• The NSSF hired the Chinese firm to finish building the 39-storey building, which already had eight floors including the four that housed Nakumatt, between June 2013 and July 2016.
• The NSSF decided to cap the building at 15 flours, lowering the construction costs to about Sh4 billion from the initial cost of Sh6.7 billion.

National Social Security Fund (NSSF) has rejected a recommendation to pay a Chinese contractor Sh1.8 billion for the stalled construction of a 39-storey building in Nairobi’s City Centre.

Antony Omerikwa, the NSSF acting managing trustee, said in a statement that the Public Works ministry will determine the rightful share owed to China Jiangxi.

NSSF had earlier rejected a Sh6.9 billion claim from China Jiangxi and a consultant hired by the fund recommended the Chinese contractors be paid Sh20 million per week as compensation for the additional 94 weeks they have been on the site, translating to Sh1.8 billion.

Construction stalled at the 15th floor and China Jiangxi has so far been paid Sh2.5 billion.

The NSSF hired the Chinese firm to finish building the 39-storey building, which already had eight floors including the four that housed Nakumatt, between June 2013 and July 2016.

“The contractor had presented a claim amounting to Sh6.9 Billion that was revised downward by NSSF’s consultants to Sh1.89 billion and is now being further reviewed and verified by the State Department for Public Works.”

READ: Chinese firm slaps NSSF with Sh6.9bn bill for stalled building

The NSSF decided to cap the building at 15 flours, lowering the construction costs to about Sh4 billion from the initial cost of Sh6.7 billion.

The troubled supermarket chain moved to court four years ago and blocked the building of additional floors above its Nakumatt Lifestyle Branch on grounds that the construction was disrupting its business.

The retail chain blocked NSSF contractors from reinforcing columns inside Nakumatt Lifestyle for other floors to be added to the building.

Auditor- General Edward Ouko last year recommended legal action taken against troubled Nakumatt Supermarkets to end the blockade.

But cash- strapped Nakumatt was evicted from building in December on failure to pay rent, paving the way for resumption of construction.