How Covid-19 will affect big ticket projects

Kenyans have been in a state of panic since the outbreak of the novel Coronavirus disease 2019 (Covid-19).From a projects perspective, contractors have been a particularly worried lot, seeing as the pandemic has affected supply chains and their ability to meet their contractual obligations.The impact on projects is already being felt with funding, project delays and even requests for contract variation. With the Kenya shilling also coming under pressure, there is a risk that some of the contracts denominated in foreign currency (which is the case for most large infrastructure contracts) could also go into payment default. The real question for contracting parties therefore, is whether their contracts are robust enough to withstand the effects of the Covid-19 pandemic.