The dispute between Kenya Breweries Limited (KBL), an arbitrator, and a construction firm accused of conspiring to extort millions is set to be heard in open court on March 23.
Justice Francis Gikonyo has ordered all parties to file their responses within three days of receiving the applications. KBL and its executives, listed as interested parties, are given seven days to submit their affidavits, with a further seven days allowed for other parties to respond.
At the core of the case is the claim that arbitrator Mutinda Mutuku and JILK Construction Limited, led by Managing Director Pastor Engineer Sammy Maina Kamau, colluded to inflate a disputed payment from KSh163 million to KSh2.4 billion.
JILK carried out work at the Kisumu Brewery, which reopened in 2019, and was paid KSh1.2 billion. Disagreement arose over the final payment, originally invoiced at KSh163 million. KBL asserts that after agreeing to resolve the dispute through arbitration, Mutuku and JILK worked together to artificially inflate the amount owed.
The brewer further alleges that Mutuku and Kamau concealed their prior relationship and exchanged money before and during the arbitration process. KBL also claims that Mutuku, a professional quantity surveyor, charged both JILK and KBL instead of splitting his fees appropriately.
In addition, the Architectural Association of Kenya faces scrutiny for appointing Mutuku as arbitrator without due diligence, while the Directorate of Criminal Investigations is accused of failing to investigate and prosecute the alleged misconduct.
Justice Gikonyo stressed the need to expedite proceedings, ensuring the arbitration award is finalized without unnecessary delays or obstruction. The hearing in open court means that lawyers will appear physically, rather than participating online as has become the norm.
JILK is represented by lawyers Nelson Havi and Kibe Mungai, while KBL is represented by Senior Counsel Kamau Karori.
JILK has countered by claiming that its employees were harassed by a contractor and has sought to involve East African Breweries Limited executives in the matter. The firm has also filed a separate case to halt the transfer of shareholding from Diageo PLC to Asahi Group Holdings until the ongoing disputes are resolved.