Kenya Urgently Requires Regulations of Road Project Cost Rates

Kenya Urgently Requires Regulations of Road Project Cost Rates

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KURA Acting Director General Eng. Silas Kinoti has called for the establishment of cost rate regulations in the infrastructure sector to provide guidelines and reduce cost overruns. He said despite the reduced cost for construction of roads in the last decade in Kenya, regulated rates like in Japan would make things better as this enable the public get better value for money. In a regulated rate regime the only area of competition among contractors will be in delivery, time, and efficiency of the product.
‘There are cases in Kenya where contractors over quote or underquote for projects and they end up being too costly for the Country. When a contractor underquotes and finally can’t do the job it becomes very expensive for the Country. The cost of road projects has reduced due to stiff competition from foreign and local contractors but this may not hold for long as market dynamics keep changing.” He was speaking while receiving a delegation from Zambia Road Development Agency (RDA) who paid a courtesy call on him today 18th June, 2018.
The delegation is led by Board Chairman Mr. Samuel Mukupa and comprises of board members and management of the Agency who are on fact finding mission on cost reduction measures in the construction and maintenance of roads.
Speaking during the meeting Mr. Mukupa said Zambia has fully implemented the tolling of all its roads as a means to enhancing financing of its road projects.
“The process of tolling took time and could not have happened without political goodwill and sector-wide consultations. The public now appreciates the development of new roads courtesy of road tolling. The public want to see how they will benefit from these resources directly. Under our program of 8000km we want to ensure all roads to rural and international boarders are upgraded to ease movement of goods to the markets”, he said.
The delegation is heading to Meru and Embu to study the efficacy and effectiveness of the road projects undertaken through the probase technology fronted by Malasyian companies.
The delegation appreciated the Kenya’s use of performance based maintenance contracts on some roads and the Low Volume Seal approach to upgrade roads in the country.