East Africa Portland Cement Company (EAPCC) is locked in a standoff with China Road and Bridges Corporation (CRBC) over mining of building materials in the cement maker’s Mavoko land for the ongoing construction of Nairobi expressway.
EAPCC is accusing the Chinese firm of mining murram and hardcore stones in two parcels of land in Mavoko without its permission and is threatening legal action. The company reckons that the Chinese firm’s mining activity is undervaluing its properties at a time when it has stepped up the search for a buyer to snap-up part of its vast properties and have asked them to stop the mining.
EAPCC is seeking at least Sh 10 billion from the land sale to help it clear mounting debts owed to KCB Bank and suppliers, and unlock fresh funding to keep it afloat. They are yet to find a suitable buyer for 2,076 acres, which shareholders voted to sell at an extraordinary general meeting in September 2019 to rescue it from insolvency after years of mismanagement amid a slowdown in property markets.
“The said materials are currently being used to construct the ongoing expressway along Mombasa road off Jomo Kenyatta International Airport (JKIA). EAPCC Plc is a government agency and cannot encourage unethical practice by contractors in the development of infrastructure,” said EAPCC acting managing director Stephen Nthei.
“We have written to the company twice to stop mining to no avail. The company cannot violate the country laws when constructing a commercial road. Any mining activities will devalue our land when we are eyeing prospective buyers. We might be forced to institute recovery proceedings against this company,” Mr Nthei added.
Nairobi Expressway Project
The Nairobi Expressway Project is a 27-kilometer road project beginning from Mlolongo through the Jomo Kenyatta International Airport (JKIA) and Nairobi’s CBD to Westland’s area along Waiyaki Way.
The project broke grounds in October last year with China Road and Bridge Corporation (CRBC) as the contractor. The latter is responsible for the design, financing, and construction of the road under a Public-Private Partnership (PPP) framework. The company will also operate the road for about 27 years so as to recoup its investment through the collection of road tolls.
The road project is the first major project in the East African country to be carried out through a PPP model. It is expected to be completed by December 2022, bringing the much-needed relief to traffic congestion in the Nairobi municipality.
