Moi University has been granted a major financial reprieve after Vishva Builders Ltd withdrew a prolonged legal claim exceeding KSh 1 billion. The dispute originated from a stalled Faculty of Science Complex construction project initiated in 1990.
The contractor initially won an arbitration award of KSh 185.3 million, but accumulated interest over nearly 25 years inflated the claim to approximately KSh 1.2 billion.
Legal Proceedings Conclude
On June 30, Justice John Chigiti at the Eldoret High Court confirmed the withdrawal of the suit and formally closed the case. Each party was ordered to bear its own legal costs. Attempts by third parties to oppose the withdrawal were dismissed, with the judge ruling that only the principal parties had standing once a settlement was reached.
Background of the Dispute
- In November 1990, Moi University contracted Vishva Builders to build the School of Science complex at its Kesses campus, with a negotiated contract value of KSh 476.3 million.
- Construction halted in April 1991 after only about 9% completion due to financial challenges cited by the university.
- The contract was formally terminated in November 1999, after which the contractor secured a court award for unpaid dues.
- The university had paid KSh 57.2 million and held a retention sum of KSh 6.3 million before work stopped.
Impact on Moi University
Earlier in the year, the university faced a freeze on several institutional accounts following its failure to present a viable repayment plan, though accounts holding research and scholarship funds were exempted.
Justice Wananda Anuro criticized the prolonged litigation, emphasizing the unacceptability of unresolved commercial disputes spanning over two decades.
The withdrawal of the suit now removes a significant financial burden, allowing Moi University to focus on its academic mission.
