Industrial parks in Western stall over lack of funds

The much-hyped Industrial Parks and Aggregation Centres launched by the national government in partnership with county governments two years ago have stalled due to a lack of funds and failure to pay contractors.

The national and county governments are now threatening to terminate contracts of the contractors over claims of delays to complete the projects.

In Bungoma the Sh500 million County Aggregation and Industrial Park (CAIP) contract is on the verge of termination.

Governor Kenneth Lusaka and Trade Cabinet Secretary Lee Kinyanjui have expressed frustrations over delays that have left the development at just 30 per cent completion, two years after its commissioning.

The project, which was expected to be completed by August 28, has fallen behind schedule, prompting the county and national government leaders to accuse the contractor of inefficiency despite having disbursed full funding.

CS Kinyanjui warned that the government would not hesitate to cancel the contract.

“Other counties have completed or are close to completing their CAIPs, yet here we are at only 30 per cent. There will be no extensions. The contract will be terminated if this continues,” Kinyanjui said.

He emphasised the critical role of industrial parks in boosting rural economies, noting that delays undermine farmers and small-scale producers.

“These facilities are meant to reduce post-harvest losses, add value to produce, and create jobs. Every delay is a setback to economic empowerment,” he said.

The governor has given the contractor two weeks to come up with a clear working plan to complete the project on time or have the contract terminated.

“We cannot allow Bungoma to lag while other counties are moving forward. Funds were deposited in a dedicated account, yet work remains stalled. Our people deserve better,” Dr Lusaka said during an inspection tour.

However, the contractor defended the progress of the project, citing unforeseen challenges, including rocky terrain and delayed payments.

The contractor Alfonso Mukweto argued that the project was poorly planned from the start.

“Most of the workers abandoned the site because of the rocks. Some sections required up to eight months to break through, and our equipment has broken down multiple times,” Mukweto said.

He claimed that they had sought extensions of time - a request that was rejected.

“We’ve already done the hardest part. If they terminate, it’s fine, but we’ll go to court. They are not admitting they’re part of the blame. We estimate we’re about 60 per cent wrong, but they are 40 per cent wrong too,” he said.

Mukweto claimed that his team had invested more money than what was provided, insisting that work would accelerate once the foundation slab was completed.

In Busia, construction of the Industrial Park at Nasewa, which was launched by former Trade CS Moses Kuria in 2023, was supposed to be complete in February 2025 but has since stalled due to lack of funds.

The contractor told The Standard that the Busia county government has only paid Sh80 million of the Sh250 million cost of the projectt.

"The national government has paid Sh250million, and the problem lies with the county government, which has only paid Sh80million out of Sh250 million, but we hope it will be sorted so that we complete the project on time," said the contractor.

However on Thursday, CS Kinyanjui, while on an inspection tour, directed the contractor to complete the project within two months before its launch in November.

"We have come to have a candid discussion with the county because when this project comes to an end, it will boost and uplift the livelihoods of our people. Those with food processing and value addition factories will benefit so that all farmers can bring their goods, and that will create employment and boost the economy of this area," said Kinyanjui.

"We want to appeal to the contractor and his team to ensure this project is completed on time so that when we come here for another visit, it is just opening, not to get construction ongoing. We will come in November to hand over the project to the community," he added.

However, the Busia county government led by Deputy Governor Arthur Odera, told the contractor to pick up the letter and begin works.

"We have the money, and that is not an issue because the national government has disbursed its share to the county, and therefore, we are waiting for the contractor to come on Monday to pick up the letter to start the work again," said Arthur.

In Kakamgara, construction of the Industrial Park at Likuyani, launched by President William Ruto in 2024 is ongoing after being hit by delays due to lack of funds.

Likuyani MP Innocent Mugabe, said the project is progressing well after the national government and county government disbursed funds.

"I want to thank the President because he released money for the project, same for the county government, and the project is at 70 percent completion. We had a few challenges, but they have been sorted out, and the work is on," said Mugabe.