Judge rejects City Hall’s push for mediation in dispute over Kenya Power's Sh6.4 billion bill

Judge rejects City Hall’s push for mediation in dispute over Kenya Power's Sh6.4 billion bill

A court has dismissed an attempt by Nairobi County and its water company to withdraw from a case filed by Kenya Power over unpaid electricity bills and retaliatory dumping of garbage at the utility firm’s Nairobi headquarters.

Justice Anne Omollo ruled that the case, which was filed in February and stems from a Sh6.4 billion dispute, should proceed in court despite the county government and Nairobi City Water and Sewerage Company (NCWSC), insisting it was an intergovernmental conflict.

The two entities had argued that the matter should be resolved through mediation before the Intergovernmental Relations Council or the Water Tribunal.

But the court held that while Article 189 of the constitution encourages alternative dispute resolution, it does not strip the court of its authority to hear cases, especially those involving alleged rights violations.

“The existence of alternative dispute resolution mechanisms does not automatically oust the jurisdiction of this court to hear petitions alleging violations of the Bill of Rights. Parties alleging want of jurisdiction must demonstrate the adequacy of the alternative mechanism, and which, in my view, and I so hold, a basis was not laid,” said Justice Omollo.

The row erupted after Kenya Power disconnected electricity at City Hall over an unpaid bill of Sh1.6 billion.

The county government responded by cutting water supply and sewer lines at Stima Plaza, Kenya Power's headquarters, over a separate Sh4.8 billion debt in wayleave charges.

The standoff escalated further when Nairobi County allegedly dumped heaps of garbage at Stima Plaza and blocked its entrance using waste trucks, prompting Kenya Power to seek legal intervention.

The firm told the court that the garbage blockade paralysed operations, affecting its workers, as well as other tenants, including clinics, banks, law firms and insurance companies.

In their objection, the county and water company maintained that the matter should have been resolved outside court.

However, the judge found their argument weak, saying no sufficient explanation had been given as to why water and sewer services were disconnected from Kenya Power premises.

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