Kenya: Court restrains Chinese firm, local subcontractor gets relief

Tuk Chilo Ltd has sued China Road and Bridge Corporation (CRBC) claiming the Chinese firm failed to honour its obligation to pay them after completing projects relating to construction and upgrading of roads in various informal settlements, reports People Daily.

The local firm claims the Chinese construction firm is in the process of winding up its operations in Kenya to relocate back to China any time soon and therefore they would suffer irreparable loss if not paid their debt, the news portal reported.

Meanwhile, High Court Judge Alfred Mabeya has restrained the Chinese firm from selling, leasing or even moving their equipment from Kenya pending the hearing of the suit.

“An order is hereby issued restraining the respondent from selling, leasing or moving their equipment from the jurisdiction of the court pending the hearing and determination of the application,” read the order as quoted by the news portal.

In their suit papers, the local firm claims failure by the Chinese firm to pay the outstanding balance is putting them at risk of having their properties auctioned.