Some disputes start small, then spiral into something far bigger than anyone imagined.
What began as a construction contract in Kisumu has now exploded into one of the most complex, high-stakes legal battles in Kenya, touching on arbitration, corporate control, judicial recusal, and even the rarely used path of private prosecution.
At the center of it all:
JILK Construction Company Limited vs Kenya Breweries Limited (KBL), Diageo PLC, and their affiliates.
But to understand where this case is going, we must first understand where it all began.
How a Ksh.15 Billion Dream Turned Into a Legal Battlefield
Around 2016, Kenya Breweries Limited (KBL) embarked on an ambitious project, building a modern Ksh.15 billion brewery in Kisumu under what was known as Project Nafasi.
The goal?
- Produce affordable alcoholic beverages
- Integrate over 15,000 sorghum farmers
- Create more than 100,000 jobs
To bring this vision to life, KBL contracted JILK Construction Company Limited.
On paper, it was a promising partnership.
In reality, it didn’t last.
When the Relationship Broke Down
Between 2017 and 2019, disputes began to emerge during implementation.
JILK eventually exited the site in November 2019, having been paid approximately Ksh.1.2 billion.
But the real fight was just beginning.
What started as a modest claim of Ksh.163 million would later balloon into a staggering Ksh.2.4 billion dispute.
And instead of resolving quietly, the parties escalated.
Phase One: Arbitration – The First War
In February 2020, JILK formally initiated arbitration proceedings through the Architectural Association of Kenya (AAK).
An arbitrator was appointed.
Hearings proceeded.
By November 2024, everything was done, submissions filed, arguments made.
All that remained was one thing:
The Arbitrator’s Award.
But it never came.
Phase Two: The High Court Steps In
Before the arbitrator could deliver the verdict, Kenya Breweries Limited made a dramatic move.
In December 2024, KBL filed a constitutional petition seeking to:
- Nullify the arbitration proceedings entirely
- Block the arbitrator from delivering the award
They alleged:
- Corruption
- Collusion between the arbitrator and JILK’s CEO
- Failure by investigative authorities to act on a whistleblower report
The High Court went further, and in a surprising turn:
- Issued conservatory orders halting arbitration proceedings
This raised serious legal questions. Because under Kenyan law: Courts are generally expected not to interfere in arbitration matters.
So why intervene here?
The Whistleblower Mystery
At the heart of KBL’s case is an anonymous whistleblower report.
But that raises uncomfortable questions:
- Who is the whistleblower?
- Is the report credible?
- Has it been investigated?
JILK, on its part, claims the report is a fabrication, allegedly orchestrated to derail the arbitration.
If proven, that’s not just strategy. That’s potentially criminal conduct.
Phase Three: A New Case, and New Allegations
In January 2026, JILK escalated matters further.
They filed a separate High Court suit against:
- Diageo PLC
- Kenya Breweries Limited
- East African Breweries Limited (EABL)
- Competition Authority of Kenya (CAK)
Their claims? Explosive.
They alleged:
- Corporate misconduct
- Legal violations during the project
- Even sexual harassment claims involving employees
At the same time, JILK argued something critical:
That although the contract was with KBL, Diageo PLC was the real force behind the project, controlling procurement, finances, and execution.
Diageo has strongly denied this, arguing it was not a party to the contract.
A Corporate Exit Raises the Stakes
As all this unfolds, another twist complicates everything.
Diageo PLC is exiting the Kenyan market.
- Sale of shares to Asahi Group Holdings
- Expected exit by July 31, 2026
JILK fears:
If Diageo leaves before the dispute is resolved, enforcing any award could become difficult, or even impossible.
They have since asked the court to:
- Compel the respondents to deposit Ksh.3 billion in court
- Fast-track the case before the transition is complete
Judges Step Aside, Again and Again
If the legal issues weren’t complex enough, the judicial process itself has faced turbulence.
- A High Court judge recused herself over conflict concerns
- Another judge stepped aside due to links with counsel in the case
And even in the Milimani Magistrate’s Court, a magistrate handling a related application also recused herself.
Each recusal raises an important question:
How do you maintain public confidence in justice when even the judges must step away?
The Latest Twist: Private Prosecution Enters the Scene
Now, the matter has taken yet another turn.
JILK has moved to initiate private prosecution proceedings against:
- Diageo PLC
- Kenya Breweries Limited
This is where the law becomes especially interesting.
Because in Kenya:
- Private prosecution is allowed
- But only with court permission under Section 88 of the Criminal Procedure Code
The court has now clarified:
- No prosecution can begin without permission
- Proceedings only formally start after charges are approved
- The DPP must be notified after, not before, proceedings are instituted
For now, the court has issued directions and set timelines.
But the big question remains:
Will the court allow a private party to prosecute corporate giants?
The Bigger Questions No One Is Asking Loud Enough
As this legal battle unfolds, several deeper issues emerge:
- Why is KBL so determined to stop the arbitration award?
- Did the High Court overstep by halting arbitration proceedings?
- Who truly controlled the Kisumu project, KBL or Diageo?
- Is the whistleblower real, or a strategic invention?
- What happens if Diageo exits before accountability is determined?
And perhaps most importantly:
Can justice keep up with corporate power?
Final Thoughts: More Than Just a Case
This is no longer just a dispute over money.
It is a case about:
- Power vs accountability
- Process vs outcome
- Corporate influence vs legal boundaries
From arbitration rooms…
to High Court petitions…
to criminal applications…
This case is evolving into a legal marathon with national significance.
And somewhere in the middle of it all lies a delayed decision worth billions of shillings, one that could change everything.
Legal Express Kenya will continue to follow every twist, every ruling, and every unanswered question.
Because this is not just legal news.
This is a story about how justice is tested, when the stakes are at their highest.
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