Telkom Kenya has won a court battle for a Sh6 billion property sold during the Moi-era in a deal that sucked in controversial businessman Francis Mburu.
Justice Ngenye Macharia nullified an arbitration award of September 2019.
It ordered Telkom Kenya to hand over the 60-acre land in Jamhuri Estate along Ngong Road to Exclusive Estates Limited (EEL), which is associated with Mr Mburu.
Justice Macharia agreed with Telkom that the arbitrator re-wrote a contract between the parties by directing Telkom to accept Sh21 million for the controversial land.
“The court hereby finds that the arbitrator exceeded her jurisdiction by re-writing the contract between the parties and hereby sets aside the award dated September 6, 2019,” the judge said.
The judgment means that Telkom Kenya has the right to retain the land, or receive at least Sh6 billion to cede the property to businessman Mburu.
Telkom Kenya is 40 percent owned by the Treasury and 60 percent controlled by private equity group Helios.
It is one of Kenya’s biggest property owners given its legacy as a State corporation or the defunct Kenya Posts and Telecommunication Corporation (KPTC).
The telecoms operator, which recently put on sale multi-billion shilling properties to fund its Kenya operations, challenged the Sh21 million deal and termed it grossly undervalued.