A wind farm Kinangop Wind Park project was cancelled due to delays and frustrations from the local community in Nyandarua County.
A Spanish firm has sued Kinangop Wind Park Limited for Sh1.2 billion compensation over alleged breach of contract in the construction of the 60.8 megawatt wind turbine.
Iberdrola Ingeniera Y Construction S.A.U claims that Kinangop Wind Park Limited, which is under receivership, in 2013 contracted it to procure and install the wind turbines but following alleged hostility by the local community the agreement was terminated in 2015.
Kinangop Wind Park, registered in the British Virgin Islands, allegedly paid Sh7.5 billion ($75,113,385) out of Sh8.7 billion outstanding claim prior to its placement under receivership.
But the receivers of Kinangop Wind Park have rejected the claim arguing that the contract and alleged compensation was signed by directors of the firm and is not binding.
“Despite demand being made by the plaintiff on the defendant and notice of intention to sue being given, the defendant has failed, refused and/or neglected to pay the said sum of $12,886,213,” says Iberdrola in a suit filed at Milimani Law Courts, Nairobi.
But the receivers, in a response filed through law firm Iseme Kamau & Maema, claim the agreement cannot be enforced since it was signed by directors of the firm who no longer have control over it. They have asked the High Court to rule the agreement invalid.