The High Court has ordered China Wu Yi Company Limited to settle a Sh139.4 million debt owed to Kenyan construction firm Machiri Limited for completed works on the Nairobi-Thika Highway upgrade in 2011.
The judgment brings an end to the nearly decade-long legal battle over unpaid dues for relocating water and sewerage infrastructure along the transport corridor.
The case originated from a July 2011 subcontract agreement, under which Machiri Limited was engaged by China Wu Yi, the main contractor, to oversee the rehabilitation and upgrading of Nairobi-Thika Road into a superhighway.
Machiri’s scope of work included relocating water and sewerage facilities under the supervision of consulting engineers, Apec Limited and the Nairobi Water & Sewerage Company.
According to court documents, Machiri completed the works and submitted its final account, which was certified by the consulting engineers, on June 18, 2014, totalling Sh326.7 million.
After accounting for prior payments and contractual deductions, the balance due stood at Sh139.4 million.
China Wu Yi contested Machiri’s claim, arguing that payment was contingent upon the certification by Nairobi Water & Sewerage Company — a condition which the Chinese firm alleged was never fulfilled.
The firm further claimed Machiri had failed to follow proper channels in submitting its final statement, rendering the claim invalid.
In an attempt to deflect liability, China Wu Yi sought indemnity from the Kenya National Highways Authority (KeNHA), arguing that the unpaid sum was KeNHA’s responsibility under the main contract.
However, KeNHA denied any obligation, asserting that it had no direct contractual relationship with Machiri, and that China Wu Yi had excluded Machiri’s claim from its final statement, thereby waiving its own right to reimbursement under the agreement.
In its ruling, the court rejected China Wu Yi’s arguments, stating that Machiri had complied with all contractual procedures.
The court noted that Machiri’s payment applications had been duly certified by the resident engineer and approved by Apec Limited, fulfilling the subcontract’s requirements.
“The plaintiff’s claim was certified in accordance with the contract terms, and the defendant’s refusal to pay lacks justification,” the judge stated.
The judge emphasised that China Wu Yi’s attempt to revisit liability was barred by a 2019 consent judgment, in which the firm had already acknowledged the debt.
The judge also rejected China Wu Yi’s third-party claim against KeNHA, ruling that the omission of Machiri’s dues from the final statement extinguished KeNHA’s liability under the main contract.
The court upheld Machiri’s entitlement to interest at commercial rates from 2014 until full payment, as stipulated in the subcontract. Additionally, China Wu Yi was ordered to bear the full costs of the suit, and its claim against KeNHA was also dismissed with costs.
