Mt Kenya University (MKU) has been granted temporary relief in a 10-year legal battle where the varsity had been ordered to pay Ksh.510 million to a private company.
The High Court in Nakuru on Monday allowed MKU to file a defence in the case against Step Up Holdings, a firm associated with businessman Bernard Gikunda Mwarania.
Justice Hilary Chemitei directed that the judgement entered against MKU be set aside pending the hearing and determination of the suit.
“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 Ksh.511 million in a joint interest-earning account in the names of both counsel for the applicant and the defendant pending the hearing and determination of the suit,” stated Justice Chetimei.
According to court documents, the university and Step Up Holdings in 2011 entered a verbal agreement to open a branch in Kericho town. Until then Step Up Holdings had been running the MKU Nakuru branch.
However, according to Step Up Holdings, a month after the agreement the university closed the Kericho campus and relocated the students leading to a loss of Ksh.900 million.
The company moved to court and the university, which did not file a legal defence at the time was found liable for Ksh.511 million.
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