China Wu Yi Ordered to Pay Sh139 Million to Kenyan Contractor for Thika Road Project

By Michelle Ndaga

A Kenyan court has directed China Wu Yi Company Ltd to pay Sh139 million to local contractor Machiri Limited, concluding a long-running dispute over work performed on the Nairobi–Thika Superhighway.

The dispute arose after Machiri Limited was contracted to carry out water and sewer relocation works along the highway, a project overseen by the Kenya National Highways Authority (KeNHA). 

Machiri completed the work and submitted certified accounts to the main contractor in 2014. However, China Wu Yi delayed payment, claiming procedural issues and contesting the final certification.

The High Court ruled that Machiri had fulfilled all contractual obligations, including submission of final accounts verified by consulting engineers. 

The court further confirmed that China Wu Yi acknowledged the debt in an earlier consent judgment, making it legally obligated to settle the outstanding amount. In addition to the principal sum, the company is required to pay commercial interest accrued since 2014 and cover all legal costs.

This ruling highlights ongoing challenges faced by local contractors in securing payments on major infrastructure projects, especially those involving foreign firms. 

The Nairobi–Thika Superhighway, completed in phases between 2008 and 2012, remains a key corridor connecting Nairobi to Thika and the northern regions, making timely execution and payment critical for subcontractors and service providers.

Machiri Limited’s success in court may set a precedent for other Kenyan firms engaged in public infrastructure projects, signaling that contractual compliance and proper certification are enforceable even against large international companies.

China Wu Yi, a Chinese construction giant with numerous projects across Kenya, is now expected to comply fully with the judgment, marking a significant legal and financial development in the country’s infrastructure sector.