Government Intervenes to End Wage Dispute at Sh2.54 Billion Tezo Housing Project

By Ben Okweingoti 

The national government has moved swiftly to resolve a wage dispute that had stalled construction at the multi-billion-shilling Tezo Affordable Housing Project in Kilifi County.

Work at the Sh2.54 billion development, comprising 955 housing units, had ground to a halt after workers downed their tools over delayed payments by the contractor.

The strike coincided with an inspection tour by officials from the Government Delivery Unit (GDU), led by Olando Sitati, alongside the Coast Regional National Government Development Implementation, Coordination and Management Committee (NGD-RICMC) chaired by Regional Commissioner Rhoda Onyancha. The two teams intervened, securing a commitment from the contractor to settle outstanding wages promptly and resume construction.

Workers expressed frustration over the delays, noting the ripple effects on their livelihoods and the local economy.

“We appreciate the project for creating jobs for hundreds of people, but delayed wages are hurting us. Even food vendors have shut down because we have no money,” said Beatrice Mahenzo, a resident of Tezo village.

Some labourers attributed the delays to late disbursement of government funds, arguing that payments had previously been consistent until disruptions emerged last month.

“The contractor has been cooperative, and we have done our part. However, we have now gone weeks without pay, and even construction materials are no longer available due to lack of funds,” said Damaris Wangari.

Jefwa Mkutano urged the government to streamline fund disbursement, warning that prolonged delays were placing significant strain on families dependent on the project.

“This is a good initiative that we support, but timely payment is critical. Over 1,000 workers rely on this site for their livelihoods,” he said.

Addressing the workers, Regional Commissioner Onyancha assured them that immediate concerns had been addressed, while more complex issues would be escalated for resolution at higher levels of government.

“They have agreed to pay you, and work should resume immediately. We are committed to ensuring the project progresses as planned,” she said, urging the contractor to accelerate construction and meet project timelines.

The Tezo Affordable Housing Project is part of the government’s broader housing agenda aimed at expanding access to affordable homes while generating employment opportunities.