Bamburi Cement is at risk of having its assets auctioned off due to a dispute with its transporter, Masai Kenya Ltd, over a shipment of 224 tonnes of cement that was not delivered to a Chinese contractor, China Communications Construction Company (CCCC), eight years ago. The cement maker claims that it paid Sh3.9 million to Masai Kenya for the undelivered cement, based on GPS data showing that the transporter's truck never entered CCCC's Kimuka, Kajiado site.
The dispute began in 2018 when Masai Kenya was contracted to transport Bamburi cement to CCCC at Kimuka. Bamburi alleges that CCCC later reported that about 224.7 tonnes of cement had not been received. Investigations, including GPS tracking of the truck, revealed that the vehicle did not enter the customer's premises. Despite this, Masai Kenya sued Bamburi and secured a judgment at a Nairobi magistrate court in March 2025, awarding the transport firm Sh4.4 million.
Bamburi appealed the judgment, challenging the interpretation of the transport agreement, treatment of GPS evidence, and delivery notes. The High Court has now stopped the execution of the lower court judgment, finding that Bamburi's appeal raises arguable questions over GPS records, delivery notes, and the transport agreement. The court also noted that Masai Kenya, through Betabase Auctioneers, had commenced execution of the lower court judgment and proclaimed Bamburi's movable assets, including essential tools of trade.
The High Court's decision means that Masai Kenya and its auctioneers cannot attach, remove, or sell Bamburi's proclaimed movable assets while the appeal is pending. The court ordered Bamburi to deposit 50 per cent of the decretal sum, which Bamburi had already done, depositing Sh2.2 million in May 2025. The judge rejected Masai Kenya's argument that the deposit was insufficient, finding that Bamburi had obtained an invoice from the Court for Sh2.2 million and paid the said amount.
The court found a real risk of prejudice because Bamburi's assets were said to be essential to its operations. The judge noted that if such assets were sold before the appeal is determined, the resulting disruption may not be adequately remedied by a subsequent order for repayment of money. The court's decision to stop the execution of the judgment is aimed at preserving the status quo until the appeal is heard.
The dispute highlights the importance of accurate record-keeping and reliable evidence in commercial transactions. Bamburi's use of GPS tracking data to investigate the missing cement shipment demonstrates the increasing reliance on technology to monitor and verify the movement of goods. The case also underscores the need for clear and detailed transport agreements to avoid disputes over delivery and payment.
The court's decision to decline Bamburi's request to nullify the decree and warrants over alleged procedural breaches suggests that the appeal will focus on the merits of the case rather than procedural issues. The outcome of the appeal will have significant implications for both Bamburi Cement and Masai Kenya Ltd, and may set a precedent for similar disputes in the future.
Key points
- Bamburi Cement faces asset auction over Sh3.9 million claim for undelivered cement.
- The High Court has stopped execution of the lower court judgment, allowing Bamburi to continue operating without disruption.
- The dispute highlights the importance of accurate record-keeping and reliable evidence in commercial transactions.
