The Kaplan & Stratton team of Senior Counsel Dr. Fred Ojiambo, Partner, Mr. James Muthui, Partner, Ms. Elizabeth Onyango, Partner and Ms. Sheryl Miima, Associate, instructed by the firm of Reed Smith LLP, led by Counsel Peter Rosher, Partner and Alison Eslick, Senior Associate, successfully acted for Sogea Satom SAS in the Court of Appeal in National Irrigation Authority (formerly the National Irrigation Board) v Satom SA [2025] KECA 1472 (KLR) in a high value contractual dispute.
The Court of Appeal clarified that a party is required to promptly honour and give effect to obligations emanating from Dispute Board (DB) decisions in a construction dispute. The Court of Appeal further affirmed that the decision of DB is binding and to which prompt effect ought to be given as a contractual obligation. In addition, the Court held that an application to refer a purported dispute to arbitration is time-bound and ought to be filed no later than when the party enters appearance. Where no appearance is entered, not later than when the party otherwise acknowledges a claim against which the stay of proceedings is sought.
The Court of Appeal’s decision marks a significant milestone for stakeholders in the construction industry by reaffirming the ‘pay now, argue later’ principle and holding that DB decisions are binding and must be promptly complied with, in conformity with international best practice in construction disputes.
In a related legislative development, the Construction Payments Adjudication Bill 2025 was introduced to regulate statutory adjudication for construction disputes. Should the Bill become law, it may expedite payment delays in construction disputes. The goal of the Bill is to enhance cash flow and minimise project delays by enforcing prompt payments through a strict decision-making timeframe. An adjudicator’s decision will be binding and enforceable, subject to the parties’ right to refer the decision to arbitration or litigation.
In case of any enquiries and/or for more information, please contact Elizabeth Onyango, Partner at LEX Africa member for Kenya, Kaplan & Stratton on EOnyango@kapstrat.com or visit https://www.kaplanstratton.com/
First published: October 30, 2025
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