Ezrah Kashumbusha.
NAIROBI, January 07, 2024 | The High Court in Eldoret, Kenya has ruled in favor of Vishva Builders Limited, ordering Moi University to pay a compensation sum of Shs. 185 million after a protracted legal battle spanning 25 years.
The dispute dates back to May 1990 when Vishva Builders tendered a contract at Moi University, formalized to commence from June 21, 1990. However, works on the project came to a halt in April 1991, leading to years of legal wrangling.
Justice Wananda Anuro, presiding over the case, acknowledged the existence of a valid agreement between the university and Vishva Builders, stating that both parties had properly executed the Bills of Quantities and the Contract Agreement, binding them to their obligations.
Central to the ruling was the finding that the cancellation of certificates by the university’s architect was unjust and biased, as it failed to adhere to the arbitration process outlined in the contract. This decision was deemed contrary to natural justice and detrimental to the interests of the contractor.
Consequently, the court ordered Moi University to compensate Vishva Builders with Shs. 185 million, alongside prevailing bank interest rates from the date of the ruling until full payment is made.
In response, Moi University had pleaded that the agreement was not executed in accordance with the law, arguing that the common seal of the parties was not properly witnessed and that the Bill of Quantities was never executed. However, this defense was dismissed by the court.
The dispute stemmed from the construction of the Faculty of Science Building, with the contractor claiming that interim certificates totaling Shs. 185 million had not been honored, leading to the protracted legal battle.
The resolution of this long-standing conflict brings closure to both parties involved and highlights the importance of contractual agreements and fair practices in the construction industry.
