Ahmed v Ali & 2 others (Environment and Land Miscellaneous Case E058 of 2026) [2026] KEELC 4616 (KLR)
The bottom line
#Kenya's High Court set aside an arbitrator's decision removing a company from an investment dispute, ruling that fairness required all key parties to take part.
What this practically means
#Executive summary
#Key legal issues
#Whether the High Court should set aside the partial award striking out the 2nd respondent from the arbitral proceedings
The partial award was set aside because the 2nd respondent is a necessary party for the applicant's claim of a 38.5% beneficial interest to be fairly determined, notwithstanding that the claimant must ordinarily bring himself within Section 35(2).
The court acknowledged the respondents' reliance on Section 35(2)'s narrow grounds and that the applicant could raise his grievances on the final award. However, adopting a broad view of the claim, the court held the 2nd respondent, as the corporate vehicle holding the investment, is the only party able to rebut the claim to 38.5%; fairness therefore required joinder, and order (i) of the partial award was set aside.
Legal principles established
#- An applicant seeking to set aside an arbitral award must bring himself strictly within the grounds in Section 35(2) of the Arbitration Act.
- An award may be set aside under Section 35(2)(b)(ii) if it is inconsistent with the Constitution or other law, inimical to the national interest, or contrary to justice and morality.
Court orders
#- 1.The partial award dated 2nd February, 2026 by the sole arbitrator, Samuel Mbiriri, FCIArb is set aside in terms of order (i) thereof
- 2.Costs in the cause
- Jurisdiction invoked
- Sections 3, 7 and 35(2)(b) of the Arbitration Act, Cap 49; Section 3A of the Civil Procedure Act
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Ahmed v Ali & 2 others (Environment and Land Miscellaneous Case E058 of 2026) [2026] KEELC 4616 (KLR)", Case Analysis (2026). Chamber Summons dated 11th February, 2026 (arbitration cause re ELC Case No. E529 of 2024 interim measures). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2026/4616/eng@2026-07-20
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