The International Centre for Settlement of Investment Disputes (ICSID), funded by the World Bank, has appointed experienced lawyer Kamau Karori to a tribunal.
Karori has the responsibility of being on the panel which will review the issue regarding the Tanzanian government and British citizen Brian Malcolm Thomson. Alleging violation of investment treaties that were endorsed by the UK and Mauritius, Thomson along with Pennyroyal Ltd which is registered in Mauritius, has accused the Tanzanian government. The dispute came about when the Tanzanian government cancelled Pennyroyal’s ownership of the land on which they had initiated the construction of the upscale Blue Amber hotel in Zanzibar.
The land was subject to a government claim that alleged that a section of it rightfully belonged to someone else. Even though it’s unconfirmed how much compensation is sought by Pennyroyal, they had invested an immense sum of $55 million (Sh8.3 billion) before the withdrawal of the title deed. John M Townsend, an American lawyer, together with Irish lawyer Michael M Collins, have appointed Karori to serve on the board as the tribunal’s head. It’s worth recognising that this marks a historic milestone- as one of the rare African appointees to the ICSID tribunal and the first person from Kenya. This achievement follows his nomination by Kenya to the prestigious ICSID panel of arbitrators.
Kenya presented three lawyer nominees in January – namely, Mr Karori, Githu Muigai (former Attorney General), and senior arbitrator John Ohaga, joining 54 others proposed by the sixteen Member States. Selecting Mr Karori for the post aligns with the current drive to have African arbitrators included in international arbitral panels in keeping with his longstanding advocacy efforts alongside other well-known arbitrators and arbitral institutions in Africa. Aside from Mr Karori’s appointment, Michael Collins (an Irish lawyer) and Mohamed Shelbaya will also serve as newly appointed members of ICSID tribunals. Established by the World Bank, ICSID handles disputes between investors and various countries, often of considerable scale.
Since its inception in 2002, Mr Karori has been at the helm of Iseme, Kamau & Maema Advocate’s dispute resolution department, which he founded. He recently assumed a new role in addition to his current position. During his tenure as lead counsel from 2015 to 2021, Mr Karori represented Kenya in its defence against Cortec Mining Kenya Ltd and Stirling in international arbitration, with a claim of Sh200 billion for the cancellation of their mining licenses. The case hinged on Kenya’s assertion that licenses were only issued because of bribery allegations made by government officials.
The claims of bribery lacked evidence, although it was discovered that the licenses had been issued in contravention of local regulations. Consequently, the allegations were dismissed and Kenya was granted Sh360 million as reimbursement for legal expenses. In 2021, ICSID reaffirmed its stance following a review requested by Cortec and Stirling. Acting as a member of the arbitration panel, the Senior Counsel has presided over disputes involving Kenya and several multinational corporations, each worth billions of shillings. On a domestic level, Mr. Karori has handled notable cases, such as the well-known BBI lawsuit, where he represented the Attorney General.
Furthermore, he has served as legal counsel for the Independent Electoral and Boundaries Commission (IEBC) during the presidential petitions of 2013, 2017, and 2022. Mr. Karori, a native of Trans Nzoia County who grew up near the Cherangany Hills, completed his legal education at the University of Nairobi Law School in 1993 and was officially admitted to the Bar in 1996. Being a proud father of four, he is also an esteemed alumnus of St Christopher’s Secondary School in Trans Nzoia County.
In addition to his legal endeavours, he actively participates in philanthropic endeavours and has made significant contributions to various establishments in his hometown. Based in Washington DC, ICSID stands as the global frontrunner in resolving disputes related to international investment.
