In a high-stakes legal battle, the Supreme Court of Kenya has upheld a 2023 order freezing the bank accounts of the Somali embassy in Nairobi, dealing a significant blow to the Somali government’s efforts to resolve a longstanding financial dispute.
The court’s decision was announced last Thursday, marking a strong moment in a legal clash involving allegations of contract breach and diplomatic immunity.
The case involves the Federal Republic of Somalia, represented by its embassy in Nairobi, and Kingsley Construction Limited, a Kenyan contractor. The Somali Public Prosecutor’s Office had filed an appeal against a previous court ruling.
The Supreme Court, led by Judge Alfred Mabeya, rejected an application by the Somali Public Prosecutor’s Office to lift the freeze on the embassy’s bank accounts at Premier Bank Limited. This freeze was instituted following a lawsuit by Kingsley Construction Limited, which had sought redress for an alleged breach of contract.
The dispute dates back to 2019 when Kingsley Construction Limited filed the lawsuit. The freeze on the embassy’s bank accounts was ordered in 2023, and the recent court upheld this order on September 12, 2024.
The Somali embassy in Nairobi, Kenya, has been at the centre of this legal conflict. The bank accounts in question are held at Premier Bank Limited, Nairobi. Kingsley Construction Limited claims that the Somali government breached a contract for maintenance work performed at the embassy, which led to the lawsuit and the subsequent freeze on the bank accounts. The Somali government contended that it should be immune from such legal actions due to diplomatic privileges.
Judge Mabeya ruled that the Somali government could not invoke diplomatic immunity to evade legal obligations related to commercial activities. The judge emphasized that the contract with Kingsley Construction Limited was a commercial agreement, not a diplomatic one. Therefore, Somalia forfeited its usual immunity in this context.
The court’s decision confirms that the bank accounts held sufficient funds to settle the outstanding loan. The Somali ambassador to Kenya, Jibril Ibrahim Abdulle, argued that Kenya and Somalia are equal sovereign states and that the embassy’s funds should remain protected under diplomatic immunity. Abdulle claimed the frozen accounts included funds from visa and passport applications, which were critical to the embassy’s operations.
The dispute has been further complicated by conflicting statements from Somali officials. Former Somali Ambassador Mohamud Nur Tarsan has vehemently denied any agreement with Kingsley Construction Limited, accusing the contractor of attempting to defraud the Somali community.
Tarsan alleged that the Somali ambassador to Turkey, Fathudin Ali, was involved in an embezzlement scheme related to the embassy’s maintenance funds. Conversely, Ambassador Ali contended that renovation efforts, initiated by the Somali community, were hindered by Tarsan’s refusal to cooperate.
