Nairobi, Feb. 23 -- Footwear manufacturer Bata Shoe has suffered a legal setback after the High Court declined to overturn an arbitration award in favour of leather supplier Yetu Leather Limited, with whom it is locked in a dispute over a footwear stitching contract.

The dispute arose from allegations concerning product quality, the use of externally sourced leather, and a Sh22.4 million refund claim.

The court upheld the arbitration award as final and binding, effectively ending the commercial dispute between Bata Shoe Company (K) Limited and Yetu Leather Limited.

Central to the case were claims that Yetu supplied leather procured from third parties rather than Bata's tannery, raising quality concerns that attracted regulatory scrutin...