Avenue Hospital settles multi-million pay dispute with construction firm

Avenue hospital in Kisumu. [Collins Oduor, Standard]

Avenue Hospital and Session Blue Contractors Ltd have entered into an agreement to settle a multi-million dispute that had spilt over to the courts.

The dispute arose from a contract awarded to the firm for the expansion of the hospital's Garden City clinic.

In documents seen by The Standard, the two parties have now reached consent which will be filed in court, with the construction company agreeing to withdraw its suit.

''The amounts referred to in [1] above have been paid to the petitioner in full and final settlement of the amounts owed by the petitioner, and the petitioner acknowledges receipt of the same,'' reads the consent in part.

The document is signed by lawyers representing both Avenue Hospital and the construction firm with the latter already having filed a motion to register the consent in court on May 30.

Notably, Session Blue Ltd was hired by the hospital's management to expand and refurbish its Garden City clinic in a contract dated June 24, 2022.

The contract had been awarded by the hospital in its renewed efforts to increase its reach countrywide and provide quality and affordable healthcare.