Former Attorney General's Firm Challenged in Court Over Role in KSh 2.4 Billion EABL Row

A multi-billion shilling dispute between Kenya Breweries Limited (KBL) and Jilk Construction Company has moved to the High Court, with both sides battling over corruption allegations, a disputed Ksh 2.4 billion claim, and a fight over legal representation.

At the Centre of the dispute is “Project Nafasi,” a Ksh 15 billion brewery project in Kisumu undertaken by KBL, a subsidiary of East African Breweries PLC. Jilk Construction had been contracted to handle civil works valued at approximately KES 1.5 billion.

In a petition filed on December 1, 2024, KBL claims the working relationship with Jilk collapsed in 2019 after the contractor allegedly left the site. Jilk initially sought about Ksh 163 million in claims.

However, KBL argues that the claim increased dramatically after the Architectural Association of Kenya appointed Mutinda Mutuku as sole arbitrator in February 2020. According to KBL, the amount being pursued rose to Ksh 2.4 billion, an increase of more than 1,300 percent.

Details of the Dispute Between EABL and Jilk

The brewer is now asking the High Court to nullify the arbitration proceedings, alleging serious irregularities. Among its claims, KBL says the arbitrator failed to disclose payments amounting to Ksh 324,000 allegedly received from Jilk and its chief executive, Sammy Maina Kamau, shortly before his appointment.

KBL also accuses the arbitrator of double-billing and submitting inaccurate timesheets, including one that allegedly reflected 570 hours of work within 23 days. The company argues that such billing would exceed the total number of hours available in that period.

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As the arbitration dispute continues, a separate legal battle has emerged over who should represent EABL and KBL in court.

The brewers have appointed Mohammed Muigai LLP, the law firm associated with former Attorney General Githu Muigai, to represent them in ongoing proceedings.

Jilk Files Petition to Block Former AG’s Law Firm from Representing the Breweries Company

However, Jilk Construction has filed an urgent court application seeking to block the firm from acting in the matter, citing a conflict of interest.

According to Jilk CEO Sammy Maina, his company had previously engaged the same law firm in 2022 to represent them in the arbitration dispute against KBL. He claims the contractor paid the firm Ksh 5.8 million as a deposit and held several strategy discussions before the engagement was later terminated, with part of the money refunded.

Jilk now argues that allowing the firm to represent the opposing side would compromise its right to a fair hearing, as the lawyers may have access to confidential information shared during their earlier engagement.

Also Read: EABL CFO and Executive Director Risper Ohaga Resigns

KBL says it turned to the High Court after efforts to pursue criminal investigations stalled. The company had filed a complaint with the Directorate of Criminal Investigations (DCI) in 2022 over alleged corruption linked to the arbitration.

According to court filings, KBL believes the arbitration process was fundamentally compromised and is seeking judicial intervention to prevent enforcement of the disputed award.

The High Court is expected to issue directions on Jilk’s application challenging EABL’s legal representation, while the broader petition to nullify the Ksh 2.4 billion arbitration award remains under consideration.

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