National Irrigation Authority (Formerly the National Irrigation Board) v Sogea-Satom S.A.S (Civil Application E933 of 2023) [2024] KECA 97 (KLR) (9 February 2024) (Ruling)

Facts

The National Irrigation Authority (NIA) and Sogea-Satom S.A.S entered into a contract for civil works at the Mwea Irrigation Development Project. A Dispute Board awarded Sogea-Satom S.A.S sums based on the contract. NIA appealed the High Court's ruling dismissing its application to refer the matter to arbitration.

Issues

1. Whether the High Court erred in law by concluding there was no issue for trial
2. Whether the High Court had jurisdiction to entertain the dispute despite a valid arbitration clause
3. Whether the Dispute Board's decisions were binding

Reasoning

The Court found the applicant had an arguable appeal and that the appeal would be rendered nugatory if the stay was not granted. The Court also considered the respondent's lack of assets in Kenya and the potential for hardship if the appeal succeeded.

Outcome

The High Court's ruling was stayed pending the appeal.

Authorities cited