Case Analysis: Strabag International GmbH v National Irrigation Authority (2024)
High Court of Kenya at Nairobi | Civil Case No. E176 of 2023 | Justice A. Mabeya | Delivered April 19, 2024
Key Takeaways
✔ Binding Nature of DAB Decisions: FIDIC Clause 20.4 mandates immediate compliance with Dispute Board (DB) rulings unless overturned by arbitration or settlement.
✔ Arbitration Defense Time-Barred: A party must invoke arbitration at the first opportunity (per Kenya’s Arbitration Act, Section 6); delay renders the defense invalid.
✔ Summary Judgment Upheld: Courts will enforce liquidated claims derived from binding contractual mechanisms where no triable defense exists.
Background
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Parties:
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Plaintiff: Strabag International GmbH (German construction firm).
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Defendant: National Irrigation Authority (NIA), Kenya.
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Contract: FIDIC-based agreement for an irrigation project (Kshs. 8.2 billion).
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Dispute Mechanism: A Dispute Board (DB) issued five binding decisions (Referrals Nos. 6–10) on claims under the contract.
