Japan's ambassador to Kenya Horie Ryoichi has raised concern over the delays in the construction of Thiba dam.
The project was launched in 2017 by President Uhuru Kenyatta.
Ryoichi told said the Japanese government is ready to fund the project adding that he is optimistic the differences that have led to the stalling of the project will be resolved.
"It is true the project is delaying a little bit but I believe the problems affecting its construction will be resolved," he said in Mwea on Monday.
The project incurred financial challenges as a dispute arose over the delayed release of funds by the government forcing the contractor on site, Strabag International - a German firm to send its workers home.
Land reclamation from the locals was also among issues which arose after those who sold the land to the government, threatened to come back and reclaim the land.
As the project serves a major benefit to the nation in boosting the economy through promoting rice production which was estimated to double from 80,000 tonnes to 160,000 tonnes a year.
Water and Irrigation Principal Secretary Joseph Irungu has asked rice farmers to be patient.
Speaking at Rukenya, Irungu said that the Treasury has resolved the issues between the State and the contractor.
"The money to pay the contractor will be factored into the Supplementary Budget and there should be no cause for alarm."