A judge has ordered the Judiciary to pay its landlord Sh111 million in outstanding rent, as directed by an arbitrator two years ago.
In a compelling order addressed to the Chief Registrar Winfridah Mokaya, the accounting officer, Judge Roseline Aburili directed the Judiciary to pay Ismail Rahimtullah Registered Trustees and Sony Holdings their dues amounting to over Sh111.7 million.
The dispute involved the leasing of Rahimtulla Towers premises by the Judiciary for six years to accommodate staff from the Directorates of Finance, Supply Chain, Human Resources, and Performance Management. The premises were also meant to be occupied by judges.
Justice Aburili issued the order following an application by Ismail Rahimtullah Registered Trustees and Sony Holdings. They complained that the Judiciary was yet to fulfill a decree issued in November 2023, which adopted the financial awards made by the arbitrator.
She stated that budget constraints in government are not a defence for failing to settle a debt.
“It is settled law that mere failure by a government department to pay a lawful debt does not excuse performance of a statutory duty. Budgetary constraints or administrative delays are equally not a defence against a legal obligation established by a court,” said Justice Aburili while allowing the application.
She found that the landlord had fully complied with the provisions of the Government Proceedings Act by obtaining a valid decree and a certificate of order against the State and serving them on the Judiciary.
The arbitrator, Fred Ojiambo, settled the dispute in favour of the landlord, in the sum of Sh111.7 million, being the outstanding and accrued rent as well as costs incurred in the preparation and registration of the Deed of Surrender of the lease.
They had also been awarded Sh36 million in legal fees and stamp duty, reinstatement, repairs, and re-letting premises at Sh20 million. The award was made by consent of both parties to the arbitration.
The Judiciary did not file any replying affidavit, statement of grounds of opposition, or submissions leaving the application to proceed unchallenged.
“The Judiciary has not alleged any procedural default or legal impediment to payment. There is no evidence of any appeal, stay of execution, or judicial review against the original judgment adopting the arbitral award, which adoption was by consent. The respondent’s counsel acknowledged that the decree has not been settled and simply asked for more time to settle,” stated Justice Aburili in the verdict.
The judge ruled that where a judgment creditor has complied with the provisions of the Government Proceedings Act and the State fails to honour its obligation, an order of mandamus ensues to compel the performance of that statutory duty.
The case was scheduled for mention on September 30, 2025 to confirm the settlement.
