[David Njaaga, Standard]The Kenya Broadcasting Corporation (KBC) is facing a Sh40 billion lawsuit in the United Kingdom that could see the State corporation wound up over a breach of contract. The dispute dates back to 2009 when KBC terminated a joint venture agreement with Dubai-based businessman Ajay Sheth, owner of Channel 2 group. According to court documents, KBC and Channel 2 entered a joint partnership in 2006, where the State broadcaster would provide technical equipment, while the latter was to supply the new digital station with staff, programming content and resources. However, Channel 2 and Sheth argue that the State broadcaster terminated the deal without notice in 2009, costing the businessman billions of shillings in foregone profits and other expenses sunk into the joint venture. The case is currently undergoing arbitration in London, with the State broadcaster staring at the possibility of having to fork out a Sh40 billion payout should the case go in favour of the businessman and Channel 2 group.

Source: Standard Digital June 16, 2021 11:51 UTC