KBL suspends contractor due to pay row with suppliers

Kenya breweries limited Kisumu plant. East Africa Breweries limited says it plans to open the plant at a cost of sh.15 billion, a move which President Uhuru Kenyatta say will create 110,000 jobs. [Collins Oduor, Standard]

Kenya Breweries has suspended one of the contractors involved in the construction of its Sh15 billion keg brewery in Kisumu.

KBL Corporate Relations Director Eric Kiniti said in a statement yesterday the firm had put on hold the contract of Civicon Group Ltd until it fully resolves any pending contractual issues with its suppliers.

“As a responsible corporate citizen, KBL is committed to the fair treatment of all personnel working at our facilities. We have taken this action because we hold all our suppliers and contractors to the same high standards of conduct performance and ethics that we practice,” read the statement.

The TransCentury Ltd franchise, which was building the brewery’s effluent treatment plant and other civil works at the site, is locked up in a pay dispute with its suppliers.

Construction work at the factory near Obunga estate was yesterday interrupted when a group of suppliers and their employees stormed the plant, demanding pay from Civicon.

The factory was temporarily inaccessible to heavy trucks and staff laying final touches on the one million litre keg brewery as the protesters barricaded the gates.

One person was arrested during the protests which were peaceful, according to Lillian Ligeyoh of Big Wave Ltd.

“We have police clearance to hold these demos and we will not relent until we are paid our money,” she said.