By Business Reporter
Nairobi, June 19, 2025, Telkom Kenya has been ordered to pay Sh240.9 million to New International Consultancy Company despite explosive allegations that the payment is based on a fraudulent power of attorney, raising serious questions about due diligence at Kenya’s state-owned enterprises.
The High Court ruling delivered June 16 by Justice B.M. Musyoki enforces a 2022 arbitration award of Sh225.2 million plus Sh15.7 million in interest, rejecting attempts by Apexvision Limited to block the payment.
Apexvision claims it never issued the power of attorney (P/A 65175/1) that New International used to initiate arbitration against Telkom. Company representative Huang Jinrong alleged the document was “fraudulently obtained” or “forged,” and that New International was on a “mission of defrauding” his company.
The dispute prompted a police report at Capital Hill Police Station and opened criminal inquiry 68/2023, though court records don’t reveal investigation outcomes.
Chief Executive Officer
Mugo Kibati
Most troubling was Telkom Kenya’s passive stance throughout proceedings involving taxpayer money. Despite initial opposition filings, the state-owned company’s counsel told the court in January they would “not contest any applications” and simply “wait for the court to determine who is supposed to be paid.”
“It’s concerning that a state-owned entity would be so passive when faced with allegations that payments might be based on fraudulent documents,” says corporate governance expert Dr. Mary Wanjiku. “Government institutions have a duty to protect public resources.”
Justice Musyoki dismissed Apexvision’s application, ruling the company failed to provide sufficient evidence of fraud. He noted Apexvision had been “economical with information” and failed to meet legal standards requiring fraud be “specifically pleaded” and “distinctly proved.”
The judge emphasized that fraud allegations must be supported by concrete evidence, not mere assertions, citing established case law requiring clear particulars of alleged fraudulent conduct.
The case exposes weaknesses in contract management at state corporations. Court records reveal parallel litigation in Commercial Case E246 of 2023 involving the same parties and Telkom payments, suggesting complex, disputed business relationships.
“This should serve as a wake-up call for all state-owned enterprises to strengthen their contract management processes,” says telecommunications analyst Sarah Kiprotich. “When dealing with public money, there’s an obligation to ensure every payment is legitimate.”
The Sh240.9 million payment represents a significant cost for taxpayers and highlights the need for robust due diligence systems at government institutions when handling complex commercial relationships, particularly those involving international parties and disputed documentation.
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