KBL–JILK Case Intensifies As Court to hear how KSh163 million became KSh2.4 billion

The dispute between Kenya Breweries Limited (KBL), an arbitrator, and a construction company accused of conspiring to inflate payments is now set for an open court hearing on March 23. Justice Francis Gikonyo has ordered all parties to file their responses within three days of receiving the applications. KBL and its executives, named as interested parties, have seven days to submit affidavits, with an additional seven days allowed for other parties to reply. At the center of the case is the allegation that arbitrator Mutinda Mutuku and JILK Construction Limited, led by Managing Director Pastor Engineer Sammy Maina Kamau, colluded to escalate a disputed payment from KSh163 million to KSh2.4 billion. JILK undertook work at the Kisumu Brewery, which reopened in 2019, and received KSh1.2 billion. However, disagreement over the remaining payment arose after the company initially invoiced KSh163 million. KBL claims that after agreeing to arbitration, Mutuku and JILK conspired to inflate the amount. The brewer further alleges that Mutuku and Kamau hid their prior relationship and exchanged money before and during arbitration proceedings. KBL also contends that Mutuku, a professional quantity surveyor, charged fees to both KBL and JILK instead of splitting his remuneration. The Architectural Association of Kenya faces scrutiny for appointing Mutuku as arbitrator without proper oversight, while the Directorate of Criminal Investigations is criticized for failing to investigate the alleged misconduct. Justice Gikonyo emphasized the need to expedite the case to ensure the arbitration award can be finalized without unnecessary delays. Holding the hearing in open court will require lawyers to appear physically, rather than online as has become common practice. JILK is represented by lawyers Nelson Havi and Kibe Mungai, while KBL is represented by Senior Counsel Kamau Karori. In its defense, JILK alleges its employees were harassed by a contractor and has sought to involve East African Breweries Limited executives in the dispute. The company has also filed a separate case to block the transfer of shareholding from Diageo PLC to Asahi Group Holdings until the matter is resolved.