Road Contract Cancellation Haunts KeNHA

Stalled Kisumu-Vihiga road
Part of the Kisumu-Mamboleo stretch whose completion was handed to a new contractor (Image: NMG)

The High Court has declined a request by the Kenya National Highways Authority (KeNHA) to suspend proceedings of five cases filed by an Israeli contractor seeking to be paid Sh1.3 billion following termination of contracts for road construction.

KENHA also wanted to be granted permission to file its defense out of time.

The cases were lodged by SBI International Holdings (Kenya) 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.

But Justice John Mativo dismissed the application saying it was unmerited. He said KeNHA did not demonstrate that it has a plausible defence.

The judge noted that the dispute relate to a contract which had an arbitration clause.

He said the decision of the Dispute Adjudication Board (DB) dated July 10, 2020 directing KeNHA to pay the contractor the Sh1.3 billion is binding.

The Israeli contractor moved to court seeking enforcement of the DB decision rendered by adjudicator, John Papworth of Shapwick, England on July 10, 2020, directing KeNHA to pay the amounts within 14 days of the decision of DB. – Business Daily