An Indian-based company that is behind the construction of the now-stalled Pinnacle Tower project has been ordered to pay close to Ksh200 Million for breach of contract.
Situated in Nairobi's Upper Hill area and projected to be standing at 300 metres tall, the skyscraper was pegged to be the highest in Africa, but its construction has been mired by delays and court cases.
In a ruling on January 27, 2021, High Court judge Alfred Mabeya ordered the company - White Lotus Projects Limited to pay Peri Formwork Scaffolding Ksh187 Million owed to the supplier, and an additional Ksh10 Million in damages.
"An award of general damages is a remedy for the loss incurred by the injured party due to the breach of contract. The plaintiff demonstrated that it suffered losses due to the depreciation, tampering with, removal, and dealing with the supplied material as they lay in waste in the defendant's possession.
Justice Mbeya added that the interest on general damages would apply from the date of judgment.
A representative of Peri told the court that it had incurred expenses even as the construction firm acknowledged its debt and expressed difficulty in paying it back.
The court heard that White Lotus settled Ksh70 Million out of the Ksh240 Million in the initial contract. The company did not register any objections to the case.
"Since the plaintiff’s evidence was unchallenged, I hold that the plaintiff was able to proof, on a balance of probability the existence of the said contract; its performance and the breach thereof," Justice Mabeya observed.
The Pinnacle Tower is yet to take off although the foundation had been dug. In October 2020, the National Construction Authority (NCA) issued the construction company a 14-day ultimatum to restore environmental safety or forfeit the land.
This was after numerous complaints emerged that the three-year project launched by President Uhuru Kenyatta in 2017 was hazardous to neighbouring estates.
The 300-metre skyscraper, which was to cost at least Ksh20 billion, was to be completed in 2019.
