SEVENTH DAY ADVENTIST CHURCH EAST AFRICA LTD, M. NYAKEGO & E.N. ADUKEV MASOSA CONSTRUCTION COMPANY

RULING

The Seventh Day Adventist Church Organisation (hereinafter “the church” or “the applicants”) is embroiled in a dispute with a building construction firm, M/S. Masosa Construction Company (hereinafter “the contractor” or “the respondent” ). The dispute relates to a contract signed between the two parties for the construction of a conference center for the church at Nyamira in 1995. According to the Contractor, the construction cost was initially agreed at Shs.17,102,152.50 but eventually it escalated to Shs. 19,064,160 by the time it was completed and handed over in the year 2000. The church had paid Shs.13,866,472 leaving a balance of Shs. 5,177,68. The church however contended that the agreed construction cost was Shs.10,600,000/= only and it was never agreed at Shs.17,102,152.20 or 19,064,160 which sums were unilaterally imposed on the church by the Contractor. The church further contended that they had overpaid the Contractor and reserved the right to counterclaim a sum Shs.3…