According to reports, the Court of Appeal has refused Baseline Architects Limited’s bid to go after 1.4 billion Kenyan Shillings from the National Health Insurance Fund (NHIF) over a failed agreement to build a medical center of excellence.
The three (3) presiding judges stated that the appeal by Baseline Architects Limited did not meet the necessary requirements needed to go on.
Justice Hannah Okwengu, Justice Kathurima M’Inoti and Sankale ole Kantai revealed that, “In our view, it would not be proper to grant leave to appeal to the applicant under section 39(3)(b) of the Arbitration Act on the ground that the intended appeal raises issues of public importance when the alleged issues were not canvassed in the High Court and the High Court has not rendered itself on the same.”
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Baseline Architects Limited stated that it had been contracted by the National Health Insurance Fund (NHIF) to provide lead consultancy services and architectural services for the construction of a medical center of excellence.
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The deal however broke down and resulted in Baseline Architects Limited suing the National Health Insurance Fund (NHIF) in addition to demanding the sum of 1.8 billion Kenyan Shillings as payment for the professional services it offered.
An Arbitrator who later presided over the case then instructed the National Health Insurance Fund (NHIF) to pay Baseline Architects Limited a total of 1.48 billion Kenyan Shillings. The National Health Insurance Fund (NHIF) which is a government corporation then moved to appeal the decision before the High Court and Justice Fred Ochieng (who is now the Court of Appeal Judge) where the decision was revoked in 2017.
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In Justice Ochieng’s ruling, it was stated that it would be against public policy to disburse a substantial amount of that magnitude for a project that never came to fruition. Justice Ochieng revealed that allowing such a payment will be a mockery of justice.
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In Baseline Architects Limited’s appeal the company argued that while the Judge had revoked the award saying that it was “shocking to his conscience”, he had not laid the groundwork for any ground of public policy issues specifically. Baseline Architects Limited added that the services legitimately offered and procured and as a result, should be paid for.
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The National Health Insurance Fund (NHIF) on its part stated that it was not legal as the contract in question was done in breach of the procurement laws in Kenya and as such it had been ordered to pay substantial amounts of money for services that were provided under a contract that was illegal.
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