The case involving Kenya Breweries Limited (KBL), an arbitrator, and a construction company accused of conspiring to extort money from the brewer will now be heard in open court on March 23.
Justice Francis Gikonyo has directed all parties in the matter to file their replies within three days of receiving the applications. KBL and its executives, who have been enjoined as interested parties, will have seven days to submit their affidavits, with an additional seven days allotted for other parties to respond.
At the heart of the dispute is the allegation that the arbitrator, Mutinda Mutuku, together with JILK Construction Limited, through its Managing Director Pastor Engineer Sammy Maina Kamau, colluded to inflate the disputed amount from KSh163 million to KSh2.4 billion.
JILK Construction carried out work at the Kisumu Brewery, which reopened in 2019, and was paid KSh1.2 billion. However, a disagreement arose over the final payment. The company had initially invoiced KSh163 million. KBL claims that after agreeing for the disputed amount to be resolved through arbitration, Mutuku and JILK conspired to artificially increase the amount in question.
Mutuku and Pastor Engineer Kamau are also alleged to have concealed their prior relationship and exchanged money before and during the arbitration proceedings concerning the Kisumu Brewery project.
KBL secured court orders to halt the arbitration’s final decision after identifying a series of irregularities that it says caused the disputed amount to balloon from KSh163 million to KSh2.4 billion. The company further alleges that Mutuku, a quantity surveyor by profession, was charging both JILK and KBL instead of splitting his fees between the two parties.
The Architectural Association of Kenya has been sued for failing to exercise professional diligence in appointing Mutuku as arbitrator, while the Directorate of Criminal Investigations (DCI) faces scrutiny for not investigating and prosecuting the alleged misconduct.
Justice Gikonyo stressed that the priority is to expedite the case and ensure the arbitration award is finalized without further delay, while preventing any party from obstructing the process. The decision to hear the case in open court means lawyers will appear physically, rather than participating online, which has become the common practice in recent times.
JILK is represented by lawyers Nelson Havi and Kibe Mungai, while KBL is represented by Senior Counsel Kamau Karori.
JILK, on its part, alleges that its employees were harassed by a contractor and has sought to enjoin executives from East African Breweries Limited (EABL) in the case. The company has also filed a separate suit seeking to halt the transfer of shareholding from Diageo PLC to Asahi Group Holdings until the current disputes are resolved.
