Chinese firm says legal battle with Kempinski hotel in Kenya costly

Chinese firm says legal battle with Kempinski hotel in Kenya costly

Avic International,a Chinese developer now says it has lost USD 176.7M  in construction delays arising from the endless court battle between it and  Villa Rosa Kempinski hotel in Kenya.
The international hotel is protesting the planned construction of a rival 43-storey hotel in an adjacent plot.

Avic now claims that the appeal that Kempinski filed before the environmental body –Nema tribunal saw it lose USD20,000m for each of the 93 days that construction stalled pending the rulling.

Villa Rosa Kempinski hotel in Kenya in September challenged NEMA’s decision to award Avic approvals for its Sh9 billion complex leading to a freeze in construction work for the entire period of the proceedings as provided for by law.

In another instance last week, Kempinski hotel in Kenya opened the second round of the battle with an appeal against Nema after its tribunal dismissed its case on grounds that it was filed outside the 60-day window following the award of an approval.

But the Chinese developer says that further delays to the multi-billion shilling project will affect it negatively.

Avic says it had made financial commitments to the project including earthwork and that they have no hope of ever recovering the money they have lost.

The complex in question is a 43-floor office block and four apartment blocks which will double as Avic’s Africa headquarters. Two of the apartment blocks will have 24 storeys, while the other two will have 25 and 28 floors respectively.

The commercial building is located between ARM Cement headquarters, Kempinski hotel and Mirage Towers.

Kempinski, one of Kenya’s premier hotels argues that Avic’s facility has hived off part of a major Road leading to its facility and is bound to increase traffic in the area, a move that will make it harder for people to access the hotel.

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