This archive report was first published on 25 July 2019.
Published on July 25, 2019, Kenya Commercial Bank (KCB) is seeking to overturn a High Court ruling that a dispute over a Sh700 million bank guarantee should be determined by a Tanzanian court.
The bank's lawyer, Philip Nyachoti, argued before the Court of Appeal in Mombasa that the dispute had been resolved through arbitration in Stockholm, Sweden in 2009.
According to Nyachoti, Justice Mary Kasango had found on March 15, 2015, that the dispute between KCB and Tanzania National Road Agency over the bank guarantee had not been fully determined.
However, Nyachoti contended that since the arbitration had resolved the dispute, Justice Kasango should not have revisited the matter.
Tanzania Road Agency lawyer, Joseph Munyithya, insisted that the dispute over the bank performance guarantee had not been resolved, saying the arbitration resolved issues relating to the contract of construction of the road.
The case has been ongoing, with a Mombasa court previously ruling that the arbitration award was against public policy to enforce.
