The High Court has rejected Cytonn Investment Limited‘s request for a stay on a decision requiring it to pay sh68 million to Crje East Africa Limited for breaching a contract.
In 2023, Crje East Africa filed a lawsuit seeking a judgment on an admitted sum of sh68,881,781, along with interest accruing from October 25, 2021, until full payment.
Cytonn challenged this, asking the court to pause the proceedings and refer the matter to arbitration.
Justice Peter Mutua Mulwa, in his ruling, pointed out that Crje East Africa had argued there was no dispute warranting arbitration between the parties.
The court also observed that Cytonn failed to specify the nature of the dispute it wanted arbitrated, given that it had admitted the claim through a letter dated October 25, 2021, and made a partial payment.
Justice Mulwa concurred with the plaintiff’s position that there was no genuine dispute to be resolved through arbitration and no valid reason to delay the case.
He confirmed that the letter from Cytonn clearly acknowledged the debt of sh72,881,781, and noted that the plaintiff had already received a partial payment of sh4,000,000, leaving a balance of sh68,881,781.
The judge’s ruling included dismissing Cytonn’s attempt to halt the payment and confirming the plaintiff’s right to the remaining sum.
As a result, the court ordered that Cytonn’s application to stay the payment be dismissed and that judgment be entered for the plaintiff for sh68,881,781 plus interest from October 25, 2021, until full settlement.
The dispute originated from a contract dated April 30, 2018, for the construction of The Ridge, a mixed-use development project on property L.R. NO. 28223/3 Ridgeways.
According to the case, work on the project was halted around December 6, 2018, due to Cytonn’s financial difficulties, which led to a suspension of the project until approximately October 25, 2019.
The parties later renegotiated the contract, resulting in an addendum signed on January 27, 2020, which extended the completion date for Phase 1 from February 14, 2020, to May 5, 2023.
The court’s ruling noted that the plaintiff had the right to claim compensation for costs arising from the work suspension, which Cytonn had allegedly failed to settle despite acknowledging the debt.
