The High Court has ordered Airworks Kenya Limited to pay USD 95,000 owed to Renegade Air Limited as a judgment on admission, in a legal battle over an aircraft lease agreement that took a dramatic turn in South Sudan.
- •Justice F. Gikonyo, sitting at the Milimani Law Courts Commercial and Tax Division, delivered the ruling, partially allowing an application filed by Renegade Air Limited.
- •The dispute centers on a De Havilland Dash 8-102 aircraft, manufacturer’s serial number 361, which was leased to Airworks by Renegade Air in May 2022.
- •The defense had argued that the financial arrears were exacerbated by a "ground incident" in South Sudan, where the leased aircraft was reportedly struck by another uninsured plane.
According to court documents filed by Airworks Director Eric Mutinda Kivindu, the collision left the company reeling from repair costs, with direct expenses of USD 128,835 to fix the damaged aircraft, and operational penalties with losses totaling USD 75,833.68 due to the inability to provide flight services while the plane was grounded.
Airworks further contended that the aircraft was defective from the outset and that Renegade Air had invoiced maintenance using "block hours" instead of the "flight hours" originally agreed upon.
The court’s decision to grant a partial judgment rested on a paper trail of electronic correspondence. In an email dated January 2, 2024, Airworks' management confirmed a commitment to pay USD 200,000 by mid-month.
However, records showed that only USD 105,000 was eventually remitted, leaving a balance of USD 95,000. Citing the established legal principle that admissions must be "plain and obvious," Justice Gikonyo ruled that this specific amount was no longer a matter of negotiation.
While the USD 95,000 was ordered paid immediately, the court declined to strike out the rest of Airworks' defense. The judge noted that the allegations regarding the South Sudan collision and the disputed maintenance billing constitute "triable issues" that require a full hearing.
"The residual part of the plaintiff’s claim of USD 402,087 is to go for trial," the judge ordered, noting that the power to strike out pleadings should only be exercised in the clearest of cases.
Renegade Air was awarded half the costs of the application. The case continues as both parties prepare to argue the remaining USD 402,087 claim in a full trial.
