A Kenyan businessman breathed a sigh of relief after Milimani Commercial Court on Monday, May 8, barred a Chinese multinational company from winding down its operation and leaving the country.
The Kenyan subcontractor, who filed the suit, accused the multinational company, China Road and Bridge Corporation (CRBC), of breach of contract for failing to settle a balance of Ksh44 million as per their agreement.
In his argument, the businessman argued that his company had completed its end of the bargain as per the contract the two firms entered into.
The firm, therefore, sought the court to bar CRBC, which is owned by the Chinese Government, from leaving the country.
"They paid part of the monies but they have allegedly refused to pay the balance of Ksh.44,391,842," the petitioner lamented as per the court papers.
A foreign company had contracted the Kenyan subcontractor to service a number of roads across Kenyan slums.
The judge, who was hearing the case, temporarily barred CRBC from closing its operations and leaving the country until the case is heard and determined.
“An order is issued restraining the respondents either by their agents or servants and or any other person acting on their behalf from selling, leasing or moving their equipment from the jurisdiction of the court pending the hearing and determination of this application,” the court directed.
In its suit, the applicant also claimed that due to CRBC's non-payment, it risked losing its primed assets to auctioneers.
The company argued that it used loans and outside finances to finance its projects, hoping to use the Ksh44 million to settle the debts.
China Road and Bridge Corporation (CRBC) is a subsidiary of the global company, China Communications Construction Company.
The company, headquartered in Beijing, specialises in engineering works on railways, roads, bridges, ports, and tunnels.
