This archive report was first published on 29 July 2019.
Published on July 29, 2019, a week after police arrested government officials over the Sh63 billion Arror and Kimwarer dams scandal, a huge row is brewing between CMC Di Ravenna, an Italian firm, and its local creditors.
CMC Di Ravenna owes €1.822 billion (Sh210.74 billion) to several firms across the globe, and six Kenyan firms have opposed plans by the firm to leave its local creditors at the mercy of Italy's courts where it has filed for bankruptcy.
The Italian firm owes an undisclosed amount to 251 firms, but only Barclays Bank, Charleston Travel Limited, Oilfield Movers, Rift Valley Water Services Board, CK Patel Limited, and Siginon Group Limited have come out to fight CMC Di Ravenna's plans to keep local creditors at bay.
CMC has filed an application seeking to have the bankruptcy proceedings in Ravenna recognised by Kenyan courts, which would force local creditors to abide by the court ruling in Italy.
However, Siginon Group argues that Kenya's quest to recover funds already paid out to CMC Di Ravenna will be hampered as local authorities will also be at the mercy of the Italy proceedings.
