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Court Blocks Sale of KPA Pension Scheme Assets

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Nyakundi Report

Newsroom 1 min read

This archive report was first published on 11 October 2019.

On October 11, 2019, a High Court in Mombasa issued a temporary injunction to stop the sale of houses and other assets belonging to the Kenya Ports Authority Pension Scheme.

The court's decision was made in a case filed by Bwana Mohamed Bwana, a tenant in one of the scheme's houses in Nyali, Mombasa.

According to the court, the Kenya Ports Authority Pension Scheme's trustees were restrained from selling prime properties, including houses, movable and immovable assets of the authority.

Justice Dorah Chepkwony ruled that the court did not have jurisdiction to determine the matter, as the KPA pension scheme Trust Deed and Regulations had an arbitration agreement that stated the matter should be referred to arbitration.

She cited Section 10 of the Arbitration Act, which stipulates that no court shall intervene in matters governed by the arbitration act.

Additionally, the court referenced Section 6 of the Arbitration Act, which requires a court to stay proceedings and refer the parties to arbitration if a party so applies.

With this ruling, the sale of the houses and other assets has been temporarily halted pending the reference of the matter to arbitration.

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