A Nairobi-based construction company has moved to the High Court seeking urgent orders to safeguard Ksh.3 billion from multinational brewer Diageo PLC and its Kenyan subsidiaries, warning that a planned sale of shares could jeopardise the enforcement of a pending arbitral award and related claims. JILK Construction Company Ltd has filed a Notice of Motion against Diageo PLC, Kenya Breweries Ltd (KBL), East African Breweries Ltd (EABL), and the Competition Authority of Kenya (CAK). The firm wants the court to compel the first three respondents to set aside and deposit Ksh.3 billion in court pending the determination of the case.
Through its lawyer, Kibe Mungai, JILK has also asked the court to prioritise the matter and deliver judgment by 30 April 2026. The request is tied to the expected regulatory approvals for Diageo’s proposed sale of its EABL stake to Japan’s Asahi Group Holdings, which is anticipated between May and June 2026. According to JILK, the urgency stems from concerns that Diageo’s potential exit from Kenya could place its assets beyond the reach of local courts, making it difficult to recover amounts claimed in a long-running dispute linked to construction works at the Kisumu brewery plant.
Court documents state that JILK entered into three contracts with Kenya Breweries Ltd between October 2017 and March 2018 to carry out civil works during the refurbishment of the Kisumu brewery under what was known as Project Nafasi. While the works were completed and handed over, disagreements later emerged over payment and project execution. Although the contracts were signed with KBL, JILK maintains that Diageo PLC exercised overarching control over the project, including procurement, supervision, and financial approvals, effectively acting as the principal client. The firm says the dispute escalated into arbitration, where it is seeking Ksh.2.45 billion, plus interest and costs. Final submissions were filed in August and November 2024, paving the way for an arbitral award.
However, JILK claims the release of the award was halted after KBL filed a constitutional petition in December 2024, resulting in conservatory orders barring the arbitrator from publishing the decision. That petition is still pending before the court. Beyond the commercial disagreement, the application raises serious allegations of sexual harassment involving JILK’s female employees and foreign consultants allegedly linked to the project. The firm claims complaints were raised internally but ignored, and that efforts were later made to shield those accused from accountability.
Two female employees are said to have reported the alleged harassment to police in January 2020, triggering investigations by the Directorate of Criminal Investigations. JILK further alleges that the respondents fabricated a whistleblower report, which it claims was used to justify legal action that stalled the arbitration process. The firm argues this amounted to an abuse of court process and obstruction of justice.
At the heart of the application is JILK’s request for protective orders to ensure that any eventual arbitral award or court judgment is not rendered meaningless by corporate restructuring or asset transfers. In its substantive suit, the construction firm is seeking multiple declarations, including findings that the respondents breached provisions of the Companies Act, Employment Act, Sexual Offences Act, and various articles of the Constitution. It is also seeking compensation for affected employees, damages for alleged abuse of court process, and orders requiring the Competition Authority of Kenya to factor in the court’s decision when reviewing the proposed Diageo–Asahi transaction.
