Court Allows Bank to Seize Contractor's Property Worth Ksh 800M

Contractors working on a road in Kenya.
Contractors working on a road in Kenya.
File

A contractor based in Tharaka Nithi County is counting losses after a court directed a local bank to seize his assets valued at Ksh800 million.

According to court documents, the contractor licensed under Westbuild General Contractors Limited won a tender to tarmac the 31 kilometres Chuka-Kanwa-Kaare road in 2014. The tarmacking of the road was slated to be completed in March 2018. 

However, the project stalled and eight years later, only six out of the 31 kilometres have been tarmacked. 

Contractors carrying out rehabilitation works on the old Nairobi-Nanyuki railway line.
Contractors carrying out rehabilitation works on the old Nairobi-Nanyuki railway line.
File

Residents in the Chuka area have over the years complained about the state of the road. 

Despite having received a short term advance payment of Ksh51 million and a surety bond of Ksh11 million by the local bank and an additional fund of Ksh780 million, the contractor failed to deliver on the project.

The State Department of Infrastructure wrote to the bank alleging default by the contractor in the performance of the project. His company, Westbuild Ltd, however, moved to court to stop the bank from recovering its debt. 

After reviewing the evidence produced in court, Justice David Majanja of the Nairobi Milimani Commercial Courts ruled in favour of the bank, pointing out that it had full authority to seize the property to recover its money. 

"The debt by the plaintiff owed to the bank is out rightly and expressly admitted and there is no reason why the bank should be restrained from exercising its power of sale in a bid to realise its debt," ruled Justice Majanja.

The ruling has also put on notice lazy contractors accused of stalling various projects. The road caught the attention of Deputy President William Ruto during his tour in Kaanwa, Tharaka Nithi County in late 2021.

The DP castigated the contractor and noted that he ought to be sacked in order to allow another firm to take up the works.

"The contractor should be relieved of his duty so that we allow another contractor to complete the project in time," he stated.

The Milimani Law Courts in Nairobi as pictured on November 18, 2019
The Milimani Law Courts in Nairobi as pictured on November 18, 2019
Simon Kiragu
Kenyans.co.ke
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