Not so good for Safaricom as it’s Mpesa Academy in a Ksh 3 billion row

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A contractor who was fired by Safaricom’s M-Pesa Foundation Academy midway through construction of its Sh3 billion elite school in Thika has asked the High Court to allow the dispute to be determined by the arbitrator. Lalji Meghji Patel & Company says an application filed by M-Pesa Foundation Academy is a ploy to delay the case.

M-Pesa Academy last year moved to court seeking stop the arbitrator, Mr Tom Oketch, from presiding over a dispute in which the contractor is demanding Sh143 million for work it did on the school between January 2015 and June 2016.

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The school took issue with some of Lalji’s works and ordered the contractor to stop and leave the site, then hired another firm to complete construction and rectify defects. Following the deadlock, Lalji notified M-Pesa Academy of a dispute to be referred to arbitration. The two parties could, however, not agree on who to preside over the proceedings.

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Lalji then sought the Architectural Association of Kenya’s assistance with the appointment of an arbitrator, which saw Mr Oketch appointed.

In June last year, Mr Oketch dismissed M-Pesa Academy’s objection to the arbitration proceedings prompting the high court suit.

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