Wilken Telecommunications (Kenya) Ltd has suffered a major setback after the High Court dismissed its bid to force Kenya Railways Corporation (KRC) to grant it exclusive rights to lay fibre optic cables along the Metre Gauge Railway (MGR) corridor.

In her ruling, Justice Josephine Mong’are declared the telecommunications firm’s application inadmissible due to procedural shortcomings.

“Guided by the above decision, this court finds that it lacks jurisdiction to determine the issue in dispute due to the Applicant's failure to anchor the same on a suit,” said the judge, effectively sealing Wilken’s hopes for interim relief.

The dispute began in May 2023 when Wilken turned to the court, alleging KRC had violated a 20-year lease agreement signed in October 2021.

The agreement granted Wilken the right to install fibre optic cables along the railway line, with a five-year exclusivity period set to run from October 13, 2023, to October 13, 2028.

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Wilken accused KRC of allowing Mobile Telephone Networks Limited (MTN) and its affiliates to use the same corridor, undermining its exclusive rights.

The company claimed this breach had not only restricted its access to the site but had also resulted in significant financial losses.

However, KRC painted a different picture, arguing that Wilken had failed to pay Sh52.8 million within the required 30-day window, as the agreement stated.

This delay, the corporation stated, had prevented it from supervising the project or handing over the site within the agreed timeframe.

By October 9, 2023, KRC had issued a notice of intention to terminate the contract.

The situation was further complicated by the lapse of the two-year period allocated for cable installation, which expired on September 1, 2023.

Despite this, KRC maintained that Wilken was still permitted to proceed with its work, provided it adhered to the original terms.

The court’s decision to dismiss the application leaves Wilken facing a precarious future for its fibre optic project, as its legal and financial troubles continue to mount.

Whether the firm will seek alternative avenues to resolve the impasse or renegotiate its deal with KRC remains to be seen.