CRBC signed, in 2009, a memorandum of understanding with Kenya, giving it authority to facilitate a government-to-government agreement between Kenya and China and a concessional loan to finance the project.

"If the study [by CRBC] was approved by the ministry of transport, CRBC would be the sole agent to design [engineering, procure and contract], construct and supervise all the work of the project," the agreement stated.

CRBC has defended the process through which it won the five-year railway construction contract. In a February press announcement, the company stated, "CRBC [has] been approved by the Kenya Railway Corp., the ministry of transport and the office of the attorney general. All the approvals followed the current laws and regulations."

The company added, “It is legal to adopt the single-sourced contractor which is recommended by the Chinese government."

However, Githu Muigai, Kenya’s attorney general, publicly stated, in early February, that the model used in awarding the contract raised fundamental legal questions.

"We have reviewed the documentation of the project and have detected numerous prima facie anomalies in the award process and documentation contrary to the Public Procurement and Disposal Act [of] 2005," he said in a letter to the ministry of transport.

That act requires all projects valued at more than $5,792 to be picked through an open bidding system. Parliament also is investigating the award of a $173-million contract to another Chinese firm, Sino-Sure Insurance Co., as an insurer for the project. The cost is roughly 6.9% of the total railway project.