Editor's Review

  • The money was to be paid within 45 days, failure to which it would attract interest at a rate of five per cent per annum compounded.
  • The liability has since grown to Ksh2 billion, including interest of more than Ksh350 million.

The Kenya Bureau of Standards (KEBS) had its accounts frozen over a Ksh 2 billion debt.

Kebs accounts were frozen by a court after the body got entangled in an 11-year court battle with Geo-Chem Middle East a company based in the UAE.

Kenya's Supreme Court ordered KEBS to pay the firm Ksh2 billion for breach of contract.

The court heard that Kebs contracted Geo-Chem in 2009 to inspect the quality of petroleum products entering the country.

But the agreement was cancelled in 2010 after petroleum dealers hiked prices.

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Breaching contract

Geo-Chem which was not compensated for the investment it made in fulfilling the contract, took the dispute to arbitration and won.

But Kebs filed its objection at the High Court and the legal battle was settled by the Supreme Court on December 18, 2020, in favour of the Dubai-based company.

The arbitral tribunal on July 29, 2016, awarded Geo-Chem Ksh1.6 billion less Ksh87.9 million which Kebs was awarded on its counterclaim.

The money was to be paid within 45 days, failure to which it would attract interest at a rate of five per cent per annum compounded.

The liability has since grown to Ksh2 billion, including interest of more than Ksh350 million.