High Court rejects CBK bid to block Sh122.4m payment to contractors

The Central Bank of Kenya (CBK) has failed in its legal attempt to stop the enforcement of a Sh122.4 million arbitral award linked to office renovation works.

This dispute traces back to office modernisation contracts signed nearly two decades ago.

The apex bank had petitioned the High Court to block the execution of the financial award, which was issued in favour of local firms Zadock Furniture Systems and Maridadi Building Contractors.

In its arguments, the banking regulator stated that the financial claims by the two companies had already been settled.

CBK legal representatives argued that allowing the award to stand would lead to double payment, consequently exposing public funds to financial loss.

However, the court rejected the application after finding that the regulator filed its challenge outside the legally permissible timelines.

By missing the filing deadline, CBK lost its window to challenge the determination, making the arbitrator's ruling binding.

The decision clears the way for the building firm and the furniture supplier to pursue the collection of the outstanding millions.

Long-running commercial disputes of this nature continue to highlight the financial risks that public institutions face when infrastructure and procurement contracts encounter protracted delays.