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KBL returns to court over alleged corruption in Sh3.4bn arbitration

KBL returns to court over alleged corruption in Sh3.4bn arbitration

Kenya Breweries Ltd (KBL) has returned to court seeking to stop publication of an arbitral award in a dispute over the refurbishment of its Sh3.4 billion Kisumu brewery project, just days after the High Court lifted a 19-month freeze on the award.

In fresh filings before the High Court in Nairobi, the brewer argues that a recently concluded investigation by the Directorate of Criminal Investigations (DCI) uncovered what it describes as “grand corruption” in the arbitration process. However, the court yesterday declined to issue immediate orders halting publication of the award pending determination of the application.

KBL is asking the court to review its July 16 ruling, arguing that the DCI investigation produced new and important evidence that was unavailable when the earlier application was heard. The company says the findings justify reinstating conservatory orders that had barred publication of the arbitral award since December 2024.

The dispute stems from refurbishment contracts awarded between 2017 and 2019 to Jilk Construction Company for works at KBL’s Kisumu brewery under the “Project Nafasi” initiative. Jilk maintains that it completed the contracted works and handed over the project, but disagreements later emerged over payment and implementation, prompting arbitration.

KBL argues that releasing the arbitral award before its review application is determined would undermine both the review proceedings and its constitutional petition challenging the arbitration process.

“The publication of the arbitral award will render both the review application and the petition nugatory,” the brewer says in a supporting affidavit.

The company relies on call data and communication records obtained during the DCI investigation, claiming they reveal contact between the arbitrator and individuals associated with Jilk Construction. According to KBL, the records support allegations that the arbitration process was tainted by corruption, misconduct and extortion.

However, a DCI affidavit filed by Police Constable Alex Wekesa paints a different picture. While investigators confirmed communication between the arbitrator and persons linked to Jilk Construction, they found no evidence of criminal conduct.

“Based on the evidence obtained, no prima facie case was established against any person,” Mr Wekesa states. He further adds that there is no evidence demonstrating that the communications amounted to a criminal offence.

The affidavit, dated July 10, 2026, says investigations have been completed and the inquiry file forwarded to the Office of the Director of Public Prosecutions for review and directions.

The High Court declined to certify KBL’s application as urgent. Although the application alleges corruption and malpractice by both the arbitrator and the respondent, the judge ruled that he did not discern any immediate danger warranting urgent intervention.

The court directed KBL to serve the application, gave the respondents 14 days to file responses and scheduled the hearing for September 21 after the court recess.

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