Civicon Company Limited which is one of the contractors for Kenya Breweries Limited project in Kisumu is on the spot for failing to pay its suppliers upto a tune of Sh1.1 million to Sh7 million. The company supplied general building materials and equipment at the Kisumu’s Sh15 billion brewery plant.
Diageo International, the main contractor in the project, subcontracted Civicon to build a water treatment plant.
Philip Ochieng, the Kisumu community chairman, said local suppliers have not been paid.
Ochieng asked KBL to take action on the matter likely to generate protests. One supplier said KBL should intervene. He said they risk losing their money after Civicon allegedly removed their construction machinery and equipment from the site on Saturday night.
The equipment was removed after suppliers got a court order allowing auctioneers to tow the equipment for lack of payment. Suppliers said attempts to get payments have been futile.
“We took loans from banks which we ought to have paid.”
Civicon is also accused of paying Sh704,000 to a supplier in July but later cancelling the transaction.
It has has also been accused of relieving more than 100 workers of their duties without following the right procedure. Suppliers plan on demonstrating at the KBL Kisumu offices.
Kisumu City Residents Association chairman Audi Ogada has criticised Civicon for refusing to pay the suppliers.