, NAIROBI, Kenya, Apr 19 – The Court of Appeal has dismissed a Sh24 billion claim from a consultant against the Nairobi City Water and Sewerage Company (NCWSC) limited.
Three appellate judges, Justice Paul Kariuki, Martha Koome and Jamila Mohamed agreed with the counsel representing the water company Tom Macharia, that the agreement for the consultancy was entered when the company had not been incorporated.
Wilfred Kamau Githua lodged a claim against Nairobi City Council and its agent NCWSC seeking an accrued amount of Sh860 million as at December 31, 2004.
NCC had entered into an agreement dated 1998 with Githua for the provision of deed plans for the valuation to prepare mutation forms for tittles deeds and carry out survey work.
The council could not pay for the services rendered by the consultant which by then amounted to Sh909 million.
NCWSC contested before the Appeal Court that the said agreement was entered before its incorporation and there was no provision for it to carry the liabilities of NCC upon its formation.
Macharia told the court that the company was just an agent, saying that contracts and agreements entered before its formation were not binding.
He said that the company was incorporated in 2003 and the contract were entered 10 years back and further he denied any existence of a valid agreement with the consultant.
Macharia said that former High Court Judge Joyce Khaminwa had dismissed NCC’s application seeking to strike out the consultant’s case, pointing out that in the appellate court, they had sought to have NCWSC removed from the proceedings in the superior court.
Khaminwa had dismissed the application by NCC on grounds that it was incompetent and an abuse of the court process.