Companies
Kenyan firm sues Chinese contractor China Road over Sh44.3m debt
Monday May 08 2023
If you are employed on a fixed-term contract, prepare to go home on the expiry date unless your employer advises you otherwise. FILE PHOTO
A local firm has taken China Road and Bridge Corporation Kenya (CRBC) to court over the failure to pay more than Sh44.3 million for the construction of various roads in Nairobi.
Tuk Chilo Ltd, which was subcontracted by the Chinese firm to construct and upgrade roads in various informal settlements and densely populated areas in Nairobi County, says CRBC refused to pay the amount even after making demands.
High Court judge Alfred Mabeya on Monday extended orders for the Chinese firm leasing its equipment, pending the determination of the case.
The court heard that CRBC is in the process of winding up its operations in Kenya and moving back to China any time soon.
“The Plaintiff avers that upon execution of the contract, they diligently performed their part of the contractual obligation and handed over completed projects to satisfaction of the Defendant,” the firm says in the petition.
The case will be mentioned on June 7 for further directions.
The Kenyan firm said the failure by CRBC to pay the money was putting them at risk of having their properties auctioned.
Documents filed in court show that the two firms entered the contract in July 2021 and the subcontractor completed the works and was subsequently issued with a certificate of completion on February 2022.
According to the subcontractor, the Chinese firm paid part of the monies but refused to complete the balance of Sh44.3 million.
“We out-sourced finances to perform our obligations in respect of the contract dated 12 July 2021and now under pressure by the financiers who threaten to auction our property as a result of China Bridge’s failure to pay them,” the firm said in the court documents.
“The outstanding amount is substantial hence our business and operations have suffered irreparable loss and damages as a result of CBRC’s breach of its contractual obligation,” the firm said in the petition.
The Chinese firm is yet to file its response.
