Enforcement of Arbitral Awards and Payment by Installments – A case Analysis of Masongo & Another v Riruta Gardens [2025] KEHC 10371 (KLR)

1. Introduction & Scope
The opinion reviews the High Court’s decision in Masongo & Another v Riruta Gardens focusing on two primary issues:

• Enforceability of arbitral awards within the statutory 90-day setting-aside period.
• Conditions under which courts may allow judgment debts to be paid by installments (ogekalaw.blogspot.com).

2. Background

• The arbitral award was issued on 11 September 2024.
• Applicants sought enforcement under Section 36 of the Arbitration Act.
• The respondent argued enforcement was premature, as the 90-day window under Section 35(3) had not yet expired. Alternatively, the respondent proposed payment in 24 monthly installments with interest frozen from 11 October 2024. The court’s ruling was delivered on 17 July 2025.

3. Legal Issues Considered

• Whether enforcement can proceed before the expiry of the 90-day period under Section 35(3).
• The evidentiary threshold required for installment payment requests (ogekalaw.blogspot.com).

4. Legal Framework

• Arbitration Act, 1995 (Revised 2010):
• Section 35(3): 90-day window for setting aside awards.
• Section 36: Enforcement of domestic arbitral awards.
• Civil Procedure Rules, 2010:
• Order 21 Rule 12(1): Court’s discretion to allow installment payments.
• Relevant Case Law: Freight Forwarders Kenya Ltd v Elsek & Elsek (2012) and Keshavji Jethabhai & Bros Ltd v Saleh Abdulla (1959), highlighting good faith and financial disclosure as preconditions for installment arrangements.

5. Court’s Findings & Analysis

• Enforcement Prematurity: The court held that the mere fact the 90-day period hadn't elapsed does not prohibit enforcement unless an application to set aside is pending—no such application existed in this case (ogekalaw.blogspot.com).
• Installment Payments: The court emphasized that such discretion is only exercised when there is sufficient cause, including:
• Comprehensive financial disclosure (e.g., audited accounts);
• Demonstrated good faith (e.g., partial payments made).
  In this case, the respondent failed to provide any supporting documentation or partial payments, and the court thus denied the installment request.

6. Conclusion

• The arbitral award was recognized as the court's judgment.
• The installment payment proposal was rejected.
• Costs were awarded to the applicants (ogekalaw.blogspot.com).

7. Practical Implications

• For Award Creditors: Enforcement should proceed immediately—no need to wait for the 90-day period to lapse unless there’s a pending setting-aside application.
• For Judgment Debtors Seeking Installments: Must present credible financial evidence, demonstrate good faith, and ideally make part payments; otherwise, such requests are unlikely to succeed (ogekalaw.blogspot.com).
• For Future Contracts & Internal Policies: Businesses should reinforce arbitration clauses and train teams on enforcement procedures to ensure smooth execution post-award.