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Tatu City construction work halted over Sh1.4b dispute

Tatu City in Kiambu County. [www.nation.co.ke]

The High Court has temporarily stopped the construction of the much-hyped multi-million shilling Tatu City project in Kiambu County over Sh1.4 billion dispute.

Judge Francis Tuiyot extended the order that was first issued on December 22 in a matter pitting Tatu City Ltd and Ongata Works Ltd.

Ongata Works had been contracted by Tatu City Ltd to build trunks, access roads and other infrastructure at project at an estimated cost of Sh1,442,460,961.

However, on December 13, Tatu City, the developer, ordered the contractor to leave the site within 14 days on grounds Ongata Works failed to adhere to stipulate regulations.

Ongata Works moved to court seeking an order barring Tatu City from evicting them from the project.

In court papers, reports Daily Nation, the contractor accused Tatu City frustrating and obstructing their work and changing instructions along the way leading to delays in completion.

Judge Joseph Onguto on December 22 ordered that the contractor should remain on site until the case was heard and determined.

Further, he directed the contractor to execute a bond of Sh140 million as a condition for granting the injunction.

He, however, warned that no construction works would go on.

He also directed that the application be placed before another judge on January 3. It was placed under Judge Tuiyot.

Tatu City argued that with extension of the status quo order, they would be liable to third parties to a tune of about Sh700 million.

The case is set to be heard on January 16 and until then, the orders issued by Judge Onguto will remain in force.

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