Lead image for Moi University reprieve as contractor withdraws Sh1 billion court case.
Financially troubled Moi University has received a major reprieve after a contractor withdrew a court case seeking more than Sh1 billion, lifting one of the biggest financial threats hanging over the institution as it battles a deepening debt crisis.
The university secured the vital lifeline after Vishva Builders Ltd withdrew a suit over a Sh185.3 million award that had ballooned to more than Sh1 billion through accumulated interest, following a botched construction project dating back nearly three decades.
The withdrawal comes barely two months after the High Court ordered the attachment of the university's key bank accounts in a bid to recover the debt arising from abandonment of construction of the Faculty of Science Complex at the institution's main campus in Eldoret.
Court records show that Vishva Builders filed a notice withdrawing the suit at the High Court in Eldoret on June 25, 2026. When the matter came up for mention before Justice John Chigiti on June 30, 2026, the contractor informed the court that the dispute had been fully settled.
"Suits are instituted by a plaintiff and defended by a defendant and in this case by Vishva Builders Limited against Moi University. The notice to withdraw the entire suit against the defendant is hereby adopted as an order of the court. This file is marked as settled and consequently the file is closed with each party bearing their own costs," ruled Justice Chigiti.
The judge also dismissed attempts by interested parties to oppose the withdrawal, noting that their legal standing ceased once the principal parties resolved the dispute.
"Where the principal party has lost interest in the suit or where the decretal sum is settled, as is the case here, then the garnishee and or the objectors no longer have any identifiable stake or legal business with the suit," Justice Chigiti ruled.