A win for Kenya against WalAm Energy
Kenya Wins Ksh538 million in a Case Against WalAm Energy
Attorney-General Kihara Kariuki announced on Saturday, July 12 that Kenya would be paid over Sh538 million.
This is a claim after Kenya won a case against a Canadian-American energy firm known as WalAM Energy, a firm that was involved in geothermal fields in Suswa.
According to Attorney General Kihara Kariuki, the case was filed by WalAm Energy in 2015 at the International Centre for Settlement of Investment Disputes (ICSID). The trial ended on Friday with the dismissal of the complaint.
The case which was about licensing indicated WalAm was awarded a Geothermal Resources license by the Energy minister Kiraitu Murungi in 2007 that would last 30 years. The grant was later revoked in 2012 after discovering that WaIAm had not performed its duties under the license.
WaIAm then filed the case at ICSID; the case was heard in London in 2018.
The energy firm wanted the tribunal to compel Kenya to reinstate its license and pay Sh36.4 billion.
However, the ruling was in favour of Kenya, and WaIAm has been ordered to bear the costs that Kenya spent in responding to the accusations.
The AG stated that the significance of this ruling was that the Ministry of Energy and the Geothermal Development Company is now at liberty to exploit the geothermal resources in Suswa geothermal fields.
WaIAm shall, therefore, pay the government of Kenya Sh70, 067,637 million correspondings to its share of the cost in the arbitration.
It shall also reimburse 75 per cent of the Government of Kenya’s legal fees and expenses of Sh441, 082,797 and Sh27, 244,384.60, stated the AG. The total amount to be paid by WaIAm to Kenya is Sh538, 394,819