CMC Di Ravenna, the Italian firm behind the controversial Sh21 billion Arror and Kimwarer dams construction saga owes a Kenyan bank Sh600 million.
It emerges that the same firm has refused to repay a loan of Sh 600 million owed to the Barclays Bank of Kenya.
Consequently, it has been directed to surrender the machinery it had procured for the construction of the dams.
Ruling on the matter on Tuesday, Justice Francis Tuiyot barred the firm from transferring any of the 98 vehicles and other machinery bought before the loan is settled.
"The court issues an order directing the company to forthwith deliver all motor vehicles and equipment listed in the asset finance agreement with Barclays Bank to Casuarina Ltd for purposes of preservation pending determination of the dispute,” the judge ruled, according to the Standard.
This comes as a blow to the construction of the two dams set to be constructed in Elgeyo Marakwet county.
Barclays Bank's head of business Anne Mbatha had raised the bank's concerns that the bank is at risk of losing the money thanks to the firm's many other loans.
“Given that they have filed the insolvency case in Italy, they are likely to remove the vehicles and the equipment to settle other third parties without regard to the loan advanced to tyem," she said in an affidavit.
Further ruling on the matter is set for Wednesday.