Two of China’s Largest Construction Companies Face New Legal Challenges in Kenya

Aerial view of the the Nairobi Western Bypass that was built by the China Road and Bridge Corporation but not completed according to the contract, according to Kenya's auditor general.

Two of China’s largest construction companies, the China Road and Bridge Corporation and China Gezhouba Group, are facing new legal challenges from local partners and authorities in Kenya:

  • NAIROBI WESTERN BYPASS: Kenya’s Auditor General Nancy Gathungu accused the China Road and Bridge Corporation of failing to build six interchanges that were included in the $171 million contract. (BUSINESS DAILY)
  • THWAKE DAM: Construction major China Gezhouba Group is being sued by a local sub-contractor for allegedly failing to pay for work on the $564 million dam in eastern Kenya. The legal dispute now jeopardizes the entire AfDB-financed project. (THE STANDARD)

WHY IS THIS IMPORTANT? Chinese construction firms dominate the market in Africa, accounting for 31% of all contracts >$50 million last year. But these kinds of quality and legal issues that are now surfacing in Kenya could pose serious reputational risks for Chinese contractors, particularly those working on AfDB-financed projects.

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by Eric Olander

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