Mount Kenya University (MKU) has been allowed to file a defence in Ksh511 million dispute with businessman Bernard Gikunda Mwarania over university premises.
The dispute pits MKU against Mwarania’s Step Up Holdings, a case that has been ongoing for over ten years.
In a ruling at Nakuru High Court, Justice Hilary Chemitei ordered that Step Up Holdings to provide a Sh511million bank guarantee from a reputable bank within 30 days pending the hearing of the case.
The Court also set aside a 2011 ruling that found MKU liable to pay Ksh511 million to Step Up Holdings.
“The interlocutory judgement entered against the applicant or defendant on November 17, 2011, is hereby set aside. The applicant shall within 30 days from the date herein deposit Ksh511 million in a joint interest-earning account in the names of both counsels for the applicant and the defendant pending the hearing and determination of the suit,” ruled Justice Chetimei.
In the 2011 case, Step Up Holdings claimed that it had a verbal agreement with MKU to open a branch in Kericho town.
However, Step Up claims it incurred losses amounting to Ksh953,881 after MKU closed the campus and shifted it elsewhere.
At that time, MKU did not place a legal defence arguing that the matter was for arbitration.
Step Up claimed that MKU “illegally” took over the campus and it transferred 3,807 students and 295 staff to other premises.