The Court of Appeal dismissed Moi University’s appeal on Thursday, ruling that the institution failed to provide a satisfactory explanation for its delay in filing a notice of appeal against an arbitration award in favor of Vishva Builders Limited. The dispute stems from a 1990 contract for the construction of the Faculty of Science Complex, initially valued at Sh547.7 million but later negotiated down to Sh476.3 million. The university had sought to challenge an arbitration decision that awarded Sh185 million in damages to the contractor, but the three-judge bench upheld the deadline for appeals, citing procedural lapses. The legal battle, which has spanned over three decades, began when the university alleged that Vishva Builders failed to complete the project on time and within budget. However, the contractor counterclaimed, leading to an arbitration process that concluded in 2022 with an award favoring Vishva Builders. Moi University’s legal team argued that the delay in filing the appeal was due to internal administrative challenges, but the court found the explanation insufficient. The ruling leaves the university without recourse to overturn the award, which it had previously estimated would cost Sh1.25 billion to resolve. The university’s financial strain has intensified as it faces additional pressures, including plans to terminate 75 senior lecturers amid a looming strike by the University Academic Staff Union (UASU). The union has accused management of replacing experienced academics with part-time staff, a move it claims undermines educational quality. The dispute over the construction contract and the staff issue highlight broader governance challenges at the institution, raising concerns about transparency and accountability in public sector projects. Legal experts note that the court’s decision sets a precedent for strict adherence to procedural timelines in arbitration disputes, emphasizing the importance of timely legal action. For Moi University, the loss underscores the long-term financial and reputational risks of protracted legal battles. The case also highlights the complexities of public-private contracts in Kenya, where delays and disputes often lead to significant financial burdens on public institutions.
Moi University Loses Appeal in 35-Year-Old Construction Dispute Over Sh185 Million
The Court of Appeal dismissed Moi University’s appeal on Thursday, ruling that the institution failed to provide a satisfactory explanation for its delay in filing a notice of appeal against an arbitration award in favor of Vishva Builders Limited. The dispute stems from a 1990 contract for the construction of the Faculty of Science Complex, initially valued at Sh547.7 million but later negotiated down to Sh476.3 million. The university had sought to challenge an arbitration decision that awarded Sh185 million in damages to the contractor, but the three-judge bench upheld the deadline for appeals, citing procedural lapses.
The Court of Appeal dismissed Moi University’s appeal on Thursday, ruling that the institution failed to provide a satisfactory explanation for its delay in filing a notice of appeal against an arbitration award in favor of Vishva Builders Limited. The dispute stems from a 1990 contract for the construction of the Faculty of Science Complex, initially valued at Sh547.7 million but later negotiated down to Sh476.3 million. The university had sought to challenge an arbitration decision that awarded Sh185 million in damages to the contractor, but the three-judge bench upheld the deadline for appeals, citing procedural lapses.
The Court of Appeal dismissed Moi University’s appeal on Thursday, ruling that the institution failed to provide a satisfactory explanation for its delay in filing a notice of appeal against an arbitration award in favor of Vishva Builders Limited. The dispute stems from a 1990 contract for the construction of the Faculty of Science Complex, initially valued at Sh547.7 million but later negotiated down to Sh476.3 million. The university had sought to challenge an arbitration decision that awarded Sh185 million in damages to the contractor, but the three-judge bench upheld the deadline for appeals, citing procedural lapses.