Smartmatic drags IEBC to court over Sh573million election debt

Dutch election technology firm Smartmatic International Holdings B.V. has moved to the High Court seeking to enforce an arbitral award of more than Sh573 million against the Independent Electoral and Boundaries Commission (IEBC) over the supply of election technology used in the 2022 General Election.

The company is seeking enforcement of an award of $4,441,833 (approximately Sh573.6 million), which an arbitrator directed the electoral body to pay within 30 days from October 15, 2025.

According to court documents, Smartmatic said the amount comprises unpaid invoices, foreign exchange losses and accrued interest arising from a contract signed with the IEBC in November 2021 for the supply of Kenya Integrated Elections Management Systems (KIEMS) kits, hardware and accessories used during the August 2022 polls.

The dispute emerged after Smartmatic accused the commission of failing to fully settle payments under the contract, prompting the company to file a claim seeking $5,038,363 for outstanding invoices, exchange rate losses and interest.

In its application filed before the High Court in February, Smartmatic argued that the IEBC had failed to challenge the arbitral award within the timelines provided under the Arbitration Act and therefore the award should be enforced.

“As such, it is in the interest of justice and promotes an expeditious dispute resolution mechanism, as underscored by the Arbitration Act, that the instant application be granted,” the company stated in court papers.

The court has directed the IEBC to file its response and submissions within seven days.

During the arbitration proceedings, Smartmatic argued that the contract required payments to be made within 30 days after invoices were issued following delivery of services.

However, the IEBC maintained that the contract documents and purchase orders were denominated in Kenya shillings and that payments were subject to a fixed exchange rate. The commission further argued that Smartmatic issued invoices in US dollars because it lacked a local bank account.

The electoral body contended that any losses arising from currency fluctuations were part of the ordinary commercial risks borne by the supplier.

“Any variance arising from foreign exchange losses is an ordinary risk in commercial operations for which the respondent bears no responsibility,” IEBC submitted before the tribunal.

In the ruling, the arbitrator found that the payment arrangement unfairly disadvantaged Smartmatic by requiring payments in Kenya shillings while applying a fixed exchange rate despite the invoices being denominated in US dollars.

“This arrangement directly undermined the claimant’s ability to realise the full contract price as invoiced in USD,” the arbitrator ruled.

The tribunal further observed that the contract was silent on penalties for delayed payments but held that interest could still be awarded to compensate the supplier for losses suffered due to the breach.

The arbitrator also noted that Smartmatic, as a foreign company without a local bank account, was placed at a disadvantage by the payment structure, resulting in what the tribunal described as a “manifestly unequal exchange.”

Following the findings, the tribunal on October 15, 2025 awarded Smartmatic $4,441,833 against the IEBC.