High Court Blow to CCCC as Firm Loses Multi-Million Shilling Dispute in Mombasa

A major legal storm has hit the controversial Chinese construction giant, China Communications Construction Company(CCCC), after the High Court in Mombasa ordered the firm to pay Ksh158,954,473 and surrender 24 valuable motor vehicles to businessman Alfred Nyadimo Agunga, trading as Y Net International.

The explosive ruling adds to the growing list of legal and contractual complaints that have followed the multinational contractor, which has previously faced scrutiny across Africa and globally over disputes involving delayed payments, contractual disagreements, and governance concerns. High-Stakes Court Battle Ends in Major Victory for Agunga According to court documents in Civil Suit No. E002 of 2021, the dispute revolved around services rendered and the sale of 24 high-value vehicles by Alfred Nyadimo Agunga and his company, Y Net International, to CCCC. After years of legal battles, the High Court ruled in favor of Agunga, directing the Chinese firm to settle the massive amount and comply with strict court conditions. The court ordered that the money be deposited into an escrow account operated jointly by counsels representing both parties within 60 days, signaling the seriousness of the matter and the court’s intention to safeguard the claimant’s interests. The judgment specifically awarded: i. A principal sum of Ksh100,112,768 ii. Commercial interest at 14 percent per annum from October 12, 2022, until payment is made in full iii. Full costs of the suit to the plaintiff In addition to the monetary award, the company was also directed to facilitate the surrender of 24 valuable vehicles tied to the transaction. Appeal Attempt Backfires In a desperate bid to overturn the ruling, CCCC moved to the Court of Appeal in Mombasa seeking to set aside the earlier orders. However, in a ruling delivered on March 25, 2026, Court of Appeal judges Justice S. Gatembu Kairu, Dr. K.I. Laibuta, and Justice G.W. Ngenye Macharia dismissed the firm’s arguments and faulted the company for failing to act in good faith. The judges noted that after communication from CIC Insurance Group, the respondent should have approached the applicant to seek variation of the insurance arrangement instead of remaining silent. The court stated: “The respondent should have, in good faith, at least approached the applicant with a view to vary the insurance after receiving communication from CIC Insurance, and shockingly, it did not.” The appellate judges then issued a stern warning: “The respondent do comply with either of the orders (i) or (ii) above within 30 days of this ruling, failure to which the applicant shall be at liberty to execute.” This effectively opened the door for execution proceedings against the Chinese contractor if it fails to comply. CCCC’s Troubled Reputation Under Fresh Spotlight The case has once again thrown CCCC into the spotlight. The company is one of the largest Chinese state-owned infrastructure firms and has been involved in major projects across Kenya and Africa, including roads, ports, and mega construction contracts. However, the firm has repeatedly faced criticism over payment disputes, subcontractor complaints, and allegations of unfair contractual practices. Internationally, CCCC has also faced sanctions and integrity concerns in some jurisdictions over procurement disputes and project controversies. In Kenya, contractors and suppliers have on several occasions raised concerns over delayed settlements and disputes involving large infrastructure projects linked to foreign firms. This latest court defeat in Mombasa is likely to intensify scrutiny on how multinational contractors handle local partnerships and contractual obligations. Agunga Now Cleared to Execute With the decree issued on April 28, 2026, Alfred Nyadimo Agunga now has the legal green light to pursue execution should the company fail to comply with the payment and asset surrender directives. For many local contractors and suppliers watching the case, the ruling sends a powerful message: even the biggest multinational giants can be held accountable in Kenyan courts. The legal showdown is now shaping up as one of the most closely watched commercial disputes involving a foreign contractor in the Coast region this year.