Some city hall assets may be seized after the High Court allowed Kenya Commercial Bank to demand Sh 4.3 billion owed to it by Nairobi County Government.
Nairobi County Government had filed an application challenging the said amount.
Justice Chacha Mwita upheld the amount which had been granted by an arbitrator in November 2019.
The City Council was loaned Sh 5 billion by Equity in 2011 to pay statutory deductions
In September 2014, KCB inherited the loan from Equity Bank and offered City Hall a grace period of six months before it could start servicing the debt over eight years.
The lender moved to court in 2020 seeking recognition of the said amount.
The amount had been awarded by arbitrator Phillip Bliss Aliker, who was chosen by both parties.
“There is no dispute that the parties agreed to go for arbitration, settled on the sole arbitrator and proceeded before him,” ruled the judge.
The county government had opposed the award arguing that the arbitrator used a procedure which had not been agreed by the parties.
