A Sh26-billion dispute pitting Kenya Railways retirees against a Chinese company, Ederman Property, will remain in court following the withdrawal of an arbitration option.
Lawyers Cecil Miller for Kenya Railways (KR), Benson Millimo for KR retirees and Gichuki King’ara for the company recorded a consent in court, agreeing to withdraw the retirees’ application to have the matter referred to an arbiter.
Consequently, Ederman Property’s case seeking Sh26 billion from the Kenya Railways Staff Retirement Benefit Scheme will go to full hearing.
The court will start by hearing an application by the company seeking to amend the case to capture an interim order that has preserved Kenya Railway’s properties pending determination of the suit.
An application by the contractor seeking to preserve the retirement scheme’s property pending arbitration was also withdrawn.
The Chinese company sued the retirement scheme after a dispute over a construction contract. The firm, which is undertaking massive projects in Kenyan housing industry, accused the corporation of changing a contract they had signed in 2009 for construction of a Sh40-billion golf city in Nairobi.
