Tana River,KENYA:Delay in the payments of Tana River project contractors is said to have derailed business sector in the county.
This is according to economic experts in the county who say the delay has affected the purchasing power of the residents.
Speaking to Baraka Fm, chairman for Kenya Chamber of Commerce and Industry Tana River branch Mr. Hassan Wario Diba said the business sector is facing a challenge blaming the delay alleging to have cut off money circulation among business families.
Mr. Wario blamed the national government over the funds delay to the county governments which has further crippled business activities in the county.
“The business sector has gone bad because there is no flow of money in the county. I don’t blame the county government but the national government which has delayed in releasing funds to the counties,” said the chamber official.
The Tana River County government is owes contractors billion of shillings from projects set up by the former regime.
Earlier last year, Tana River County governor Dhadho Godhana said he would pay some contractors before the year end.
He affirmed that auditing the projects was on progress to determine genuine and fake projects before payment which is to be done is phases is done.
“From next week we shall pay debts, so the business people with debts will start getting their money but only for genuine projects because we shall set aside the fake projects. You should be patient because the debts are more than the money available,” Godhana said.
Already some former top officials are under EACC investigation over the disappearance of 78 million shillings from county coffers during Governor Hussein Dado’s term .
According to EACC officials ghost projects named as KWS premise fencing project at Garsen, Madogo market , weighbridges among others were being investigated as potential avenues through which the funds were embezzled from the county coffers.