Bunge Tower: Disputes Over Kenya Shilling, US Dollar Payment Delay Completion of Govt Building

Bunge Tower is one of Nairobi City's skyscrapers, but its interior fittings have yet to be completed. A collage of Bunge Tower, a 28-storey building to house MPs offices and conference rooms. 

The government began the construction of Bunge Tower, scheduling its completion in three and half years The 28-storey building was to be occupied by members of parliament in 2016, but disputes between the contractors and procuring entity delayed the completion According to the status report, the building is 99.8% complete, however, most of the remaining work is interior fittings Bunge Tower contractor demanded 80% of the payment to be made in US dollars and 20% in Kenya shillings 

Bunge Tower is one of Nairobi City's skyscrapers, but its interior fittings have yet to be completed. A collage of Bunge Tower, a 28-storey building to house MPs offices and conference rooms. 

What is the current Bunge Tower cost? The report indicated that 99.8% of the main work has been done, but the construction cost has been revised thrice. In October 2022, the revised contract cost stood at KSh 7.092 billion and KSh 8.3 billion in 2023. Bunge Tower's total construction cost now stands at KSh 9.26 billion as of March 2024, with no signs of being completed soon. 

Why Bungo Tower construction costs is rising? The status report further highlighted payment disputes between the main contractor, subcontractors, and procuring entity. The difference in views was escalated by the mode of currency in which the payment was supposed to be made. The contractor insisted that 80% of the contract be paid in US dollars and 20% in Kenya shillings. 

The contractor also delayed the execution to subcontractors dealing with the interior, like electrical fittings and water, among other services.

Number of office spaces in Bunge Towers for MPs In November 2022, Parliamentary Service Commission (PSC) chair Moses Wetangula noted that 63 MPs will not be lucky enough to secure offices in the new office block that has officially been given the green light for occupation.

The 28-storey building, known tentatively as Bunge Towers, boasts 26 committee meeting rooms and only has the capacity to host 331 MPs 

 

 

 

 

 

 

 

 

 

 

 

 


Sandra Santeyian

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