Kenya wins Ksh 31B claim in the Kinangop Wind Park Project

An international arbitral tribunal, the International Court of Arbitration (ICC) seating in London, has dismissed a claim against the Government of Kenya for over Ksh. 31 billion (US 311,649,022 million).

The Tribunal in its award issued on 2nd July 2018 dismissed all the claims by Kinangop Wind Park Limited (KWP).

The Tribunal has however reserved the final award on costs of the arbitration.

The arbitration arose out of a proposed 60.8 Megawatt wind turbine farm to be located in Kinangop at a cost of US $154 Million.

The project, if successful, was a Vision 2030 initiative, which sought to increase the generation capacity from 1.5GW to 5.6GW by the year 2022.

The two weeks hearing took place in London, December 2017, where Kinangop Wind Park sought compensation and damages under the Letter of Support issued by the GoK for the erection of 38 wind turbines alleging that the government had failed to eliminate a political event emanating from community protests.

The project never materialized as the community in Kinangop raised concerns about the manner in which the project was being implemented.

Specifically, there was no proper community engagement and sensitization, compensation of the people around the set back areas, relocation and the manner in which the land was leased.

The Government of Kenya on its part filed a defence denying the allegations and contemporaneously filed a counterclaim and an order for costs.

The Tribunal in its ruling declared that there was no Political Event within the meaning of the Letter of Support and dismissed Kinangop Wind Park Limited’s claims and request for reliefs.

The government was represented in the matter by the Attorney General assisted by Michael Sullivan QC of One Essex Court, Njeri Wachira Deputy Solicitor General, Pauline Mcharo, Deputy Chief State Counsel, Belinda Kiilu, Principal State Counsel, Senior State Counsels, Jennifer Gitiri  and Timothy Kihara, State Counsels, Charles Kamunya, Sheila Mammet, Victoria Munyi and Charles Wamwayi.

The Claimant was represented by King and Spalding, London.

  

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