Court to Hear How KSh163 Million Claim Rose to KSh2.4 Billion
Court to Hear How KSh163 Million Claim Rose to KSh2.4 Billion
Judge sets strict timelines as Kenya Breweries battles arbitrator and contractor
The High Court will hear the case between Kenya Breweries Limited (KBL), an arbitrator, and a contractor in open court on March 23. KBL accuses the two of conspiring to inflate a disputed claim from KSh163 million to KSh2.4 billion.
Justice Francis Gikonyo directed all parties to file responses within three days of receiving the applications. He also allowed KBL and its executives, who joined the case as interested parties, seven days to file affidavits. Other parties will have a further seven days to respond.
At the centre of the dispute is arbitrator Mutinda Mutuku and JILK Construction Limited, led by Managing Director Pastor Engineer Sammy Maina Kamau. KBL alleges that the two colluded to inflate the claim during arbitration proceedings.
JILK carried out construction work at the Kisumu Brewery, which reopened in 2019. KBL paid the contractor KSh1.2 billion for the project. However, a dispute arose over the final payment. JILK had invoiced KSh163 million as the outstanding amount.
KBL says it agreed to refer the dispute to arbitration. However, it now claims that Mutuku and JILK manipulated the process and increased the amount in question to KSh2.4 billion.
The brewer further alleges that Mutuku and Kamau concealed a prior relationship. It also claims they exchanged money before and during the arbitration. In addition, KBL argues that Mutuku, a quantity surveyor, charged both parties instead of splitting his fees as required.
As a result, KBL secured court orders that halted the final arbitration award. The company says it uncovered irregularities that caused the disputed amount to escalate sharply.
Court to Hear How KSh163 Million Claim Rose to KSh2.4 Billion
Professional Bodies and Investigators Drawn into Dispute
KBL has also sued the Architectural Association of Kenya. The brewer accuses the body of failing to act professionally when it appointed Mutuku as arbitrator. Furthermore, KBL has sued the Directorate of Criminal Investigations for allegedly failing to investigate and prosecute the alleged misconduct.
Justice Gikonyo stressed the need to fast-track the matter. He said the court aims to prevent unnecessary delays and obstruction. For that reason, the court will hear the case physically rather than virtually.
JILK is represented by Nelson Havi and Kibe Mungai. KBL has engaged Senior Counsel Kamau Karori.
Meanwhile, JILK denies wrongdoing. The company claims that a contractor harassed its employees. It has also sought to enjoin executives from East African Breweries Limited in the proceedings.
In addition, JILK has filed a separate case to block the transfer of shareholding from Diageo PLC to Asahi Group Holdings until the current dispute is resolved.
The March 23 hearing will mark a critical stage in a case that has raised serious questions about arbitration integrity and corporate governance.
