Corporates Government News

Trustees of Pension scheme stopped from selling KPA assets

Some of the Kenya Ports Authority Staff Houses at Kizingo area in Mombasa that will be disposed by KPA Pension Scheme. PHOTO | KEVIN ODIT | NMG

A High Court in Mombasa has stopped the sale of houses belonging to the Kenya Ports Authority(KPA) Pension Scheme. The application had been filed by Bwana Mohamed Bwana, a tenant in one of the scheme’s houses in Nyali, Mombasa.

In the case that was heard before Lady Justice Dorah Chepkwony, the Scheme’s trustees were stopped  by the court from selling prime properties, movable and immovable assets of KPA including the houses in contention.

“Pending the reference of the matter to the arbitration’s hearing and determination, a temporary injunction is hereby issued restraining the defendants from transferring, alienating, disposing either by public or private treaty the prime properties both movable and immovable assets of KPA pension scheme including houses,”said Hon. Justice Chepkwony.

She said the court did not have the jurisdiction to determine the matter as the KPA pension scheme Trust Deed and Regulations had an arbitration agreement that stated the matter should be referred to arbitration. This is also pursuant to Section 10 of the Arbitration Act that stipulates no court shall intervene in matters governed by the arbitration act.

Moreover, pursuant to Section 6 of the Arbitration Act, a court which proceedings are brought in a matter which is the subject of an arbitration agreement shall, if a party so applies not later than the time when the party enters appearance or otherwise acknowledges the claim against which the stay of proceedings is sought, stay the proceeding and refer the parties to arbitration unless the agreement is null and void, inoperative or incapable of being performed or the matter is not in fact any dispute between the parties with regard to the matters agreed to be referred to arbitration.


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