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Not so fast: Disputed debts and arbitration clauses as a shield against insolvency proceedings

The decision in Kwale International Sugar Company Limited v Epco Builders Limited and Two Others [2025] KECA 227 (KLR) reinforces the principle that insolvency proceedings must be reserved for clear cases of inability to pay and cannot be used as leverage in unsettled construction disputes. It also clarifies the boundaries between private dispute resolution mechanisms and…

Not so fast: Disputed debts and arbitration clauses as a shield against insolvency proceedings

The decision in Kwale International Sugar Company Limited v Epco Builders Limited and Two Others [2025] KECA 227 (KLR) reinforces the principle that insolvency proceedings must be reserved for clear cases of inability to pay and cannot be used as leverage in unsettled construction disputes. It also clarifies the boundaries between private dispute resolution mechanisms and…