A Kenyan company has moved to attach and auction vehicles and other assets belonging to China Communications Construction Company in a bid to recover a Sh158 million disputed debt tied to the hiring of plant machinery.
The enforcement action follows a recent Court of Appeal ruling that gave the contractor a 30-day window to secure the decretal sum through an insurance bond or bank guarantee, failing which execution would proceed.
The debt is owed to Alfred Nyadimo Agunga, trading as Y Net International.
Court documents show auctioneers have been instructed to seize a fleet of more than 20 motor vehicles and other movable assets linked to the firm to recover the outstanding amount, now standing at about Sh158.9 million after interest and costs.
The warrants, dated April 29, were issued by the High Court in Mombasa.
The dispute dates back to a 2019 equipment lease agreement under which businessman Y Net International supplied excavators and bulldozers to the contractor for use in its projects.
The parties agreed on daily hire rates ranging between Sh45,000 and Sh70,000, with payments due within seven days of invoicing.
Payment dispute
According to court findings, the contractor continued using the machinery and making payments even after the initial four-month contract expired, implying a continuation of the agreement.
However, payments slowed and eventually stopped around September 2020, leaving a growing backlog of unpaid invoices.
By the time the dispute reached court, the outstanding balance stood at Sh187.7 million, part of which was later reduced through payments.
The matter was referred to mediation, but the process failed, as confirmed in the mediator’s report dated May 21, 2022.
In June 2024, the High Court awarded the businessman Sh100 million for the commercial claim against the contractor, together with interest at 14 percent per year and legal costs.
‘The plaintiff proved his case on a balance of probabilities and is entitled to the reliefs sought,’ the court ruled, noting that the invoices formed a valid basis for the claim.
After the judgment, the contractor sought to halt execution pending appeal.
The High Court granted a conditional stay requiring the deposit of the full decretal amount in an escrow account, a condition that was not met.
Appeal process
The parties, in March 2025, recorded a consent before the Court of Appeal requiring the contractor to secure the amount through an insurance bond issued by CIC Insurance within 14 days.
The contractor again failed to comply.
In its ruling delivered on March 25, 2026, the Court of Appeal acknowledged the non-compliance and revised the earlier consent.
It allowed the contractor to secure the amount through a reputable insurer or provide a bank guarantee.
‘The respondent shall comply within 30 days of this ruling, failing which the applicant shall be at liberty to execute,’ the judges directed.
Enforcement move
The court noted that the dispute over the insurance bond had delayed compliance but emphasised that security for the decretal sum remained mandatory to sustain a stay of execution.
However, the company has now issued warrants in its bid for full enforcement of the ruling through the sale of attached assets.