A high stakes commercial dispute between Kenya Breweries Limited (KBL) and contractor JILK Construction Company Limited is continuing before the High Court, with the company’s Chief Executive Officer, Jane Karuku, now formally enjoined in the proceedings.
The court allowed an application to join the KBL CEO as a party to the suit after counsels Karori and Mwangi indicated that they did not oppose the joinder. The matter revolves around KBL’s bid to halt Sh3 billion arbitration proceedings initiated by JILK.
Following her inclusion in the case, Kariku, through her lawyer Cecil Miller, urged the court to mark her application as unopposed, noting that no responses had been filed. She sought 14 days to file and serve responses to the applications before court, saying the time was necessary to properly address the issues raised.
The request was opposed by lawyer Nelson Havi, who argued that the matter should be expedited so that the court can move to the substantive issues. Counsel Kibe also objected to the 14-day request, stating that it would only delay a matter that requires urgent determination.
Kibe pointed out that the 1st respondent had already filed two applications dated February 6 and February 16. The first sought to fast-track the hearing of the petition, while the second sought to discharge conservatory orders previously granted by the court. He argued that there was no guarantee the matter would be heard expeditiously and maintained that the applicant had continued to benefit from the existing conservatory orders. He urged the court to issue directions on the two pending applications without delay.
On its part, the 1st respondent asked the court to grant leave in the interest of time and justice, saying parties should be given adequate opportunity to respond.
The dispute traces back to a civil works contract awarded to JILK between October 2017 and March 2018 for a major investment project in Western Kenya. The project was expected to integrate more than 15,000 sorghum farmers into KBL’s value chain and create over 100,000 jobs.
JILK exited the site in November 2019 after receiving approximately Sh1.2 billion. What began as a Sh163 million claim later escalated to about Sh2.4 billion an increase KBL has described as unjustified. The contractor then initiated arbitration proceedings, seeking Sh2.45 billion plus interest and costs.
Before the arbitral tribunal could deliver its award, KBL moved to the High Court in December 2024 seeking to terminate the arbitration. Through lawyer Kamau Karuri, the brewer alleged corruption and collusion between the arbitrator and JILK’s chief executive, Sammy Maina Kamau.
Separately, JILK has filed a Notice of Motion against Diageo PLC, Kenya Breweries Limited, East African Breweries Ltd (EABL), and the Competition Authority of Kenya (CAK), seeking orders compelling the first three respondents to reserve and deposit Sh3 billion in court pending the hearing and determination of the suit.
The contractor has urged the court to fast-track the matter, pointing to the planned exit of Diageo PLC from the Kenyan market by July 31, 2026, following the sale of its shares to Asahi Group Holdings. JILK argues that the impending ownership transition could complicate enforcement or settlement of any arbitral award and has asked the court to deliver judgment by April 30, 2026.
