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Firm sues Judiciary over debt of Sh532m

By Paul Ogemba | Dec 4th 2020 | 2 min read
By Paul Ogemba | December 4th 2020

A company that was picked to refurbish the High Court building in Nairobi is demanding over Sh500 million for unfair termination of its contract.

NK Brothers Limited has sued Chief Registrar of the Judiciary Anne Amadi for Sh532 million after the cancellation of a deal in which it was to convert the Income Tax House into the current Milimani Law Courts in Upper Hill, Nairobi.

Through lawyer AGN Kamau, the company claims it has been denied the rights to enjoy the fruits of its labour.

"The company is unable to service bank loans due to the refusal by the Judiciary to settle the payment. They are apprehensive that the Judiciary has no intention of paying them unless compelled by the court,” Kamau said.

If the Judiciary fails to pay, the company wants Treasury Cabinet Secretary Ukur Yatani compelled to deduct the amount from the Judiciary's budget.

In a sworn affidavit, Pravinchandra Mavji, the NK Brothers Limited managing director says the contract to begin work was signed in October 2004. A dispute arose in November 2016 and the matter was referred to Onesmus Mwangi Gichuiri for arbitration.

According to Mavji, both parties wanted the matter settled out of court and entered into talks to agree on compensation.

"After extensive negotiations, we signed consent with the Chief Registrar of the Judiciary in February 2018, which was recorded by the arbitrator as the final award. But the Judiciary has refused to pay us to date."

The company boss claims that the principal sum of Sh532 million has already attracted interest of Sh152 million, thus raising the total to Sh684 million, which he fears the Judiciary will not settle.

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