Court stops contractor from raiding Kenya Railways bank accounts over Sh525m debt
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The High Court has reversed an earlier decision allowing a construction firm to attach the bank accounts of Kenya Railways Corporation over a debt of Sh525 million.
Justice Mabeya had in an earlier ruling allowed Kenya Railways bankers – Kenya Commercial Bank and Equity Bank – to release Sh105 million and Sh19.6 million, respectively, to Vee Vee Enterprises through its lawyer Wilfred Mutubwa.
The High Court has reversed an earlier decision allowing a construction firm to attach the bank accounts of Kenya Railways Corporation over a debt of Sh525 million arising from a contract executed more than a decade ago.
While lifting the orders issued last month allowing Vee Vee Enterprises to attach the bank accounts of the corporation, Justice Alfred Mabeya stated that KRC was a state corporation and its bank accounts could not be seized. The Sh525,448,335 million was awarded to the firm during arbitration.
