The High Court has declined to compel the Jomo Kenyatta Foundation (JKF) to deposit Sh109 million in an interest earning account for a disputed debt owed to a printing firm.
Printing Services Ltd was contracted to print and produce various JKF titles. Other than that, Printing Services acts as a key reference point to verify authentic JKF publications to weed out fake issues.
The court observed that JKF had demonstrated financial distress, as evidenced in a letter to the National Treasury showing revenues dropped from Sh1.3 billion to Sh121 million though the period over which sales declined was not defined.
The court said compelling the company to deposit the amount as sought by the publisher would effectively shut it down before any dissolution process begins.
It also lifted an injunction stopping plans to wind up or divest from JKF which is owned by the government. ‘In the foregoing, I find that the plaintiff’s (Printing Services Ltd) application dated 30th April 2025 has no merit and it is dismissed but with no order as to costs,’ said the court.
Printing Services Ltd stated in the application that JKF had admitted the debt in writing in a letter on January 13, 2025, but has failed, refused, or neglected to pay.
The printing and publishing firm asked the court to compel JKF to deposit the amount and place a temporary injunction restraining the government from implementing any decision to dissolve, wind up, or divest from the State corporation.
In an affidavit, Printing Services Ltd director Dhillon Malkiat Singh said failure to pay the money was causing serious financial strain, impairing its ability to pay employees and sustain operations.
He stated that through a Cabinet memo on January 21, 2025, the government proposed the dissolution or divestiture of JKF, and if that happened without paying the debt, the publisher would have no legal entity to sue for recovery, rendering any future judgment useless.
JKF opposed the application through its managing director, David Kamau Mwaniki, saying the orders sought were premature and illegal.
Mr Kamau argued that compelling a State corporation to deposit money in court or an escrow account violates constitutional principles as all expenditures must be approved by the National Treasury and Cabinet Secretary.