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October 23, 2018

Suppliers want KBL to act in Civicon dipute

EABL Supply Chain Director Patrick Kamugi pours KBL Managing Director Jane Karuku a drink of the first sample of Senator Keg produced at the newly refurbished Sh15 billion Kisumu Brewery during a test-tasting session/MAURICE ALAL.
EABL Supply Chain Director Patrick Kamugi pours KBL Managing Director Jane Karuku a drink of the first sample of Senator Keg produced at the newly refurbished Sh15 billion Kisumu Brewery during a test-tasting session/MAURICE ALAL.

Suppliers in Kisumu have asked Kenya Breweries Limited to compel engineering company Civicon Group Limited to pay them for goods provided. Altenatively, they want KBL to pay them directly and recover funds from Civicon.

 They told managing director Jane Karuku that Civicon owes them millions of shillings for building materials and equipment.

 They were used to build the Sh15 billion KBL plant in Kisumu.

 The suppliers said Kenya Breweries should intervene and assist them to freeze all payments to Civicon.

 They said all the equipment at the site should be held as security until the suppliers are fully paid.

 The suppliers fear they will lose their money if Civicon moves its equipment from the site.

 “We are requesting KBL to quickly intervene for us to be paid. We took loans from banks which we are required to repay,” supplier Lilian Ligeyo said.

 She was among suppliers protesting outside the KBL Kisumu plant.

 KBL last month suspended Civicon, over the payment dispute with suppliers.

 But KBL head of sourcing Rosemary Chesire said they do not have a direct privity of contract with Civicon and suppliers.

 “It is our view that Civicon is the right party to address the claims,”

 Chesire said in a letter dated October 5.

 She advised the suppliers to complain with the board of the National Construction Authority (NCA).

 Chesire said the board is mandated to inquire into the matter and take appropriate action.

 Civicon was founded in 1975 and is based in Nairobi. It also has offices in Kampala, Uganda.

 The Star’s calls and texts to Civicon Group management went unanswered.

 In a letter dated October 1, the suppliers requested KBL to alternatively pay then directly and recover other funds from Civicon.

 “This will amicably settle the payment issue.

 Every supplier can furnish you with purchase orders, invoices and delivery notes to prove their debts upon request from your office,” the letter read.

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