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High Court Orders KBC to Pay Sh18m Debt to UK, Nigerian Firms, Rejects Budget Constraint Defence

Nairobi, Kenya — The High Court in Nairobi has ordered the Kenya Broadcasting Corporation (KBC) to pay over Sh18 million to two foreign sports management companies, rejecting the state broadcaster’s attempt to block the settlement on grounds of financial constraints.

In a ruling delivered on Tuesday, the court directed KBC to honour its contractual obligations to Optima Sports Management International (UK) Limited and Optima Sports Management International (Nigeria) Limited, bringing an end to a protracted legal dispute.

The court dismissed KBC’s argument that budgetary limitations should excuse the payment, stressing that public institutions must comply with valid court judgments and uphold commercial agreements.

The debt originated from a breached sports broadcasting rights contract signed in 2008, under which KBC failed to pay for rights secured through the Optima firms.

In 2020, judgment had already been entered against the broadcaster for €120,000—equivalent to over Sh18 million at the time—alongside interest accruing at 14 percent annually and legal costs amounting to Sh923,597.

The latest ruling compels the Managing Director of KBC to effect payment, reinforcing the judiciary’s position that government agencies cannot evade financial obligations through claims of inadequate funding.

The court further underscored the importance of maintaining credibility in international commercial dealings, warning that failure to honour contracts could undermine investor confidence.

The judgment adds to mounting financial pressures on KBC, which has faced ongoing operational and debt challenges in recent years.

As of press time, the corporation had yet to issue an official response, though it is expected to either comply with the order or pursue an appeal.

Akeem Adebayo
Akeem Adebayo
Akeem Olalekan Adebayo is an Editor at newsfocusng.com, covering Business, Energy, Foreign Affairs, and Defence, with a focus on clear, balanced analysis of issues shaping Nigeria and the global economy.
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