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Kenyan Government’s Hiring of the State-Owned Chinese Company Used to Build the SGR Ruled Illegal by Court of Appeals

Kenya's President Uhuru Kenyatta flags off the inaugural Nairobi-Suswa, Standard Gauge Railway (SGR) line constructed by the Chinese Communications Construction Company (CCCC) and financed by Chinese government, on October 16, 2019 in Nairobi. SIMON MAINA / AFP

Kenya’s Court of Appeals dealt a devastating blow to the government and its national rail company when it ruled on Friday that the $4.7 billion (Ksh 500 million) contract with the state-owned China Road and Bridge Corporation (CRBC) was illegal and violated the constitution.

The court ruled the government did not properly follow standard procurement regulations in accordance with Article 227 (1) of the Constitution that stipulates all government purchasing decisions should “fair, equitable, transparent, competitive and cost-effective.”

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