Con­trac­tor asks NHC to hold US firm’s cash

Business Daily (Kenya) - - CORPORATE NEWS - Brian Wa­suna bwa­­tion­

Lo­cal con­trac­tor Epco Builders has asked the High Court to bar the Na­tional Hous­ing Cor­po­ra­tion (NHC) from re­leas­ing Sh123 mil­lion to Amer­i­can firm Lemna In­ter­na­tional Inc fol­low­ing a pay dis­pute over 230 houses it was sub-con­tracted to build in the State cor­po­ra­tion’s Lang’ata hous­ing scheme.

Epco Builders says Lemna, which was hired by the NHC to over­see con­struc­tion of the houses, sub­con­tracted it to do the works at Sh862 mil­lion. It adds that it com­pleted the works but Lemna is yet to pay it a Sh123 mil­lion bal­ance de­spite sev­eral de­mands.

The lo­cal sub­con­trac­tor adds that let­ters to the NHC re­quest­ing the State cor­po­ra­tion to in­ter­vene have failed to elicit


The NHC is yet to re­spond to the suit but has asked the High Court to strike it out, ar­gu­ing it has no con­tract with Epco Builders hence should not be dragged into the pay­ment dis­pute.

The 230 houses are part of the NHC’S Lang’ata Hous­ing Scheme Phase IV. The houses were com­pleted in 2012.

“Lemna has in breach of the con­tract failed, ig­nored or ne­glected to pay Epco Builders the sum of Sh123,818,265 and has con­tin­u­ally ig­nored de­mand let­ters and re­minders from Epco Builders...” Epco says.

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