Kenya Court Orders $95K Payment in Airline Lease Dispute
The High Court of Kenya has ordered Airworks Kenya to pay $95,000 to Renegade Air after finding that the company admitted to part of a disputed debt linked to a 2022 aircraft lease agreement.
In a ruling dated March 12, 2026, Judge F. Gikonyo determined that email correspondence between the two Nairobi-based aviation firms showed Airworks Kenya had acknowledged owing a portion of the total $497,087 claimed by Renegade Air. The dispute centers on a lease agreement signed on May 30, 2022, for a De Havilland Canada DHC-8-100 turboprop, registration 5Y-RNZ.
According to the court, Airworks Kenya had agreed in January 2024 to pay $200,000 toward the outstanding amount but only transferred $105,000, leaving an admitted balance of $95,000. Based on this clear admission, the court entered judgment for that amount without proceeding to a full trial.
Renegade Air filed the lawsuit in February 2025, seeking recovery of the full $497,087 and requesting that Airworks Kenya’s defense be dismissed as lacking merit. The airline also raised concerns about Airworks’ financial position, citing multiple outstanding obligations and the potential risk of insolvency.
However, the court declined to dismiss the entire defense, ruling that the remaining disputed balance of $402,087 must be resolved through a full hearing. Judge Gikonyo said the issues raised by Airworks Kenya warranted further examination and could not be decided solely on the available admissions.
Airworks Kenya has contested the broader claim, arguing that the leased aircraft was defective and resulted in additional operational costs. The company alleges that the aircraft was damaged in an incident involving another plane in South Sudan, leading to repair expenses of approximately $128,835 and further penalties of $75,833 due to service disruptions.
As part of its defense, Airworks has filed a counterclaim of $120,000, seeking to recover a portion of those costs. The court found that these arguments present “triable issues,” meaning they require detailed review and evidence in a formal trial setting.
The case will now proceed to a full hearing to determine liability for the remaining disputed amount, while the $95,000 judgment stands as an enforceable obligation based on the admitted debt.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com