How Did Ksh163 Million Turn Into Ksh 2.4 Billion? Court Set To Hear Chronicles

The High Court has set March 23 for the hearing of a high-stakes dispute pitting Kenya Breweries Limited (KBL) against an arbitrator and a contractor it accuses of orchestrating a scheme to inflate a KSh163 million claim into a staggering KSh2.4 billion.

Justice Francis Gikonyo directed all parties to file their responses within three days of being served with the relevant applications. KBL and its executives, who have been enjoined as interested parties, will have seven days to file their affidavits, with a further seven days granted to other parties to respond.

At the centre of the row is work undertaken at the Kisumu Brewery, which reopened in 2019. The contractor, JILK Construction Limited, had invoiced KSh163 million as part of a final payment dispute after reportedly being paid KSh1.2 billion for the project. KBL says that after both sides agreed to refer the disagreement to arbitration, the arbitrator, Mutinda Mutuku, and JILK’s Managing Director, Sammy Maina Kamau, conspired to escalate the contested amount to KSh2.4 billion.

KBL alleges that Mutuku and Kamau concealed a prior relationship and exchanged money before and during the arbitration proceedings. The brewer further claims that the arbitrator, a quantity surveyor by profession, improperly charged both parties separately instead of apportioning his fees between them.

The company successfully obtained orders halting the final arbitration award, arguing that procedural irregularities and misconduct led to the dramatic escalation of the claim.

In a widening legal net, the Architectural Association of Kenya has been sued for allegedly failing to exercise due diligence in appointing Mutuku as arbitrator, while the Directorate of Criminal Investigations is accused of failing to investigate and prosecute the alleged misconduct.

Justice Gikonyo underscored the need to fast-track the matter to avoid further delays in concluding the arbitration award and cautioned parties against causing unnecessary obstruction. The case will be heard in open court, meaning counsel will appear physically rather than virtually.

JILK is represented by Nelson Havi and Kibe Mungai, while KBL’s legal team is led by Senior Counsel Kamau Karori.

Separately, JILK has filed another suit seeking to block the transfer of shareholding from Diageo PLC to Asahi Group Holdings until the current dispute is resolved.

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