Mombasa County executive committee member Evans Ogada faces arrest for contempt of court over the county government's failure to pay Kooba Kenya Ltd more than Sh154 million following a dispute over a proposed data centre in the coastal city.
Ogada faces arrest after the Court of Appeal declined to suspend a judgment finding him in contempt for failing to comply with court orders directing payment of the outstanding debt.
The dispute dates back to 2017, when the county government declined to approve Kooba's proposed data colocation centre, which the company intended to establish as a regional facility serving Kenya and the wider Greater Eastern Africa region.
Background of the dispute
In a judgment delivered on April 13, 2017, the High Court found that the county government had violated Kooba's right to fair administrative action under Article 47 of the Constitution. The court ordered the county to stamp and return the company's building plans and issue a certificate of approval.
The court subsequently assessed compensation in a judgment delivered on March 10, 2022, awarding Kooba Sh151 million, together with interest and costs.
In June 2024, the High Court issued an order compelling the county government and its executive committee member for finance to pay the judgment debt. The amount included Sh151 million in compensation and Sh3,397,240.65 in taxed costs, with interest accruing under the decree.
Court rulings and consequences
The county's failure to settle the amount prompted further legal proceedings against the official responsible for implementing the payment orders. Ogada was subsequently found in contempt of court, and arrest warrants were issued.
The county government made several attempts to challenge the decisions through applications before the Court of Appeal. A single judge rejected an application seeking a stay of execution and an extension of time to file an appeal.
The county subsequently sought a hearing before a three-judge bench. However, when the parties appeared before the bench last week, the county withdrew its application after failing to comply with the applicable procedural rules.
The withdrawal leaves the judgment and the arrest warrants against Ogada in force, according to the account of the latest proceedings.
Kooba's response to the situation
Kooba, through its managing director, Richard Bell, says it has made repeated demands for payment without success.
Bell said the dispute had grown beyond the company's pursuit of compensation for losses suffered after the proposed project was frustrated. He said it had become a matter of principle concerning enforcement of court judgments and the obligation of public institutions and their officers to comply with court orders.
Established in 2015, Kooba planned to develop and operate a carrier-neutral data colocation centre serving multinational corporations, content providers, government agencies and financial institutions across the region.
The company acquired land in Mombasa's Kizingo area, citing its strategic location about 200 metres from the Seacon landing station and its proximity to the landing points of the TEAMS, LION and EASSY submarine cables.
Kooba argued that the proposed facility would provide regional data infrastructure for organisations that rely on data centres in Europe and other international markets. Its plans covered Kenya and neighbouring countries, including Tanzania, Uganda, Rwanda, Ethiopia, Burundi, the Democratic Republic of Congo, Malawi, South Sudan and Zambia.
