Kenyan Court Upholds Freeze on Somali Embassy Accounts Over Unpaid Renovation Debt

by: Horn Observer Contributor | 13 September 2024 21:38

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Kenyan Court Upholds Freeze on Somali Embassy Accounts Over Unpaid Renovation Debt

NAIROBI, Kenya (HORN OBSERVER) - A Kenyan construction firm is moving forward with plans to auction the Somali Embassy in Nairobi due to an outstanding renovation debt of KSh 25.6 million (approximately $174,080 USD) that has been unpaid since 2016.

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A Kenyan construction firm is moving forward with plans to auction the Somali Embassy in Nairobi (pictured) due to an outstanding renovation debt of USD 174,080.

NAIROBI, Kenya (HORN OBSERVER) - A Kenyan construction firm is moving forward with plans to auction the Somali Embassy in Nairobi due to an outstanding renovation debt of KSh 25.6 million (approximately $174,080 USD) that has been unpaid since 2016.

On Thursday, a Kenyan court rejected Somalia's appeal to lift the freeze on the embassy's bank accounts at Premier Bank Limited.

High Court Judge Alfred Mabeya upheld the decision to keep the accounts under attachment in response to a debt owed to Kingsley Construction Limited.

The contractor had filed a lawsuit against the embassy for breaching a renovation contract. While Somalia argued for diplomatic immunity to lift the account freeze, the court determined that immunity does not extend to commercial agreements.

Consequently, the embassy's accounts will remain frozen until the debt is paid.

Despite previous court rulings and attempts at an out-of-court settlement, the embassy has not resolved the outstanding balance.

Kingsley Construction Limited is now pursuing recovery of the funds through the auction of the embassy's assets.

The Somali Embassy in Nairobi has not provided any comments, and the Ministry of Foreign Affairs in Mogadishu has yet to respond to requests for comment.