The Italian construction company CMC di Ravenna, embroiled in a controversy over two dams in Elgeyo-Marakwet County, is battling legal challenges in Nepal after abandoning a project in December, casting doubt on its capacity to execute work in Kenya.
Kenyan media reports indicate the Nepalese government seized the firm’s 2.1 billion rupees performance bond (Sh1.84 billion) following its failure to complete a Sh35.5 billion infrastructure project. The government had previously disbursed Sh800 million in advance payments to CMC, which was supposed to be repaid once 80% of the work was completed.
The Asian Development Bank has warned it will not fund the Nepal project if CMC is reappointed, as the company faces bankruptcy proceedings and fraud allegations in Italy. Italian prosecutors allege CMC officials participated in a fraudulent scheme tied to a port construction contract in Molfetta, prompting a court request to halt its business operations.
In Kenya, the Arror and Kimwawer dams project remains stalled despite Sh20 billion in expenditures. Documents reveal the contract excludes Sh6 billion in land compensation, potentially forcing the government to cover additional costs. The National Land Commission plans to pay Sh2.6 million per acre to 800 families, pushing total project costs beyond Sh70 billion.
Elgeyo-Marakwet Governor Alex Tolgos has urged affected residents to reclaim their land, accusing local cartels of obstructing progress. Investigators question how budget figures were determined without a finalized project design, while KVDA officials cite political interference as a delay factor.
