CCN and Barclays Bank seek out-of-court deal in ads row

City Hall and Barclays Bank are seeking an out-of-court settlement of a dispute over Sh30 million advertising billboards. 

The City Council of Nairobi (CCN) on Tuesday told Mr Justice Joseph Mutava that it was negotiating with the bank for an amicable solution.

Mr Justice Mutava directed the parties to return to court on July 25 to confirm settlement.  He also extended court orders issued last week stopping City Hall from interfering with Barclays’s operations after it threatened to block the entrance to the bank’s two city branches with garbage trucks. 

The bank had moved to court after the threat to barricade entrances to its Queensway and Market branches with the stinking garbage trucks, unless it paid Sh30 million allegedly arising from the advertisements.

Through lawyer Allen Gichuhi, the bank said it had paid for the outdoor advertising services from 2009 to 2012 in accordance with the terms of a contract with Blueprint Marketing Ltd. It added that it had no contractual relationship with Magnate Venture Ltd or with the council in respect of sites licensed to Magnate. 

But Mr Gichuhi aimed a council employee had called the bank demanding advertising fees.   He said the official had verbally warned that the council would carry out the threat if the money was not paid immediately.

But after a meeting convened to iron out the dispute, Barclays agreed to pay Sh2 million for three years based on rates applied in the payment of 2008 and 2009. The lawyer told the court that council official later visited the bank’s offices and demanded an outstanding amount of Sh30 million.

The bank is accusing the council of demanding unlawful payments owed to them by third parties licensed by City Hall adding that despite having paid for the services rendered, City Hall continued to threaten it.

The bank says in the court papers that it paid the money due to Blueprint who in turn remitted the same to Magnate after deducting a commission of 18 per cent.