The High Court has declined to suspend a request by the Kenya National Highways Authority (KeNHA) to suspend payments of Sh1.3 billion to an Israeli firm.
KeNHA had requested the court to suspend proceedings of five cases filed by the Israeli contractor seeking to be paid the said amount after the termination of road construction contracts.
SBI International Holdings (Kenya) filed the cases seeking enforcement of an arbitration award made by the Dispute Adjudication Board (DB) in relation to various contracts including the one for dualling of Kisumu Boys Roundabout – Mamboleo Junction.
Justice John Mativo ruled that KeNHA did not prove that it has a plausible defence.
“To the extent that these proceedings seek to enforce the DB decision, this court cannot intervene except in situations contemplated by Section 10 of the (Arbitration) Act,” he ruled.
He added that the decision of the DB of July 10, 2020, instructing KeNHA to pay the contractor the Sh1.3 billion is binding.
Through its chief legal officer, Nathaniel Chisenga Munga, KeNHA said the money will be paid from taxpayers’ coffers and that the omission to file the defence was not due to negligence.
Due to delayed payments, the dualling of Kisumu Boys and Mamboleo junction which was expected to be completed by December 21st 2019 stalled after the Israeli firm, terminated the contract on September 27th, 2019.
Zhongmei Engineering Company also terminated its contract for construction of the Ahero Interchange due to delayed payment by the authority.
At the time of stalling, the Kisumu- Mamboleo road was 89 per cent complete while the Ahero Interchange was 50 per cent complete.