The High Court has ordered the government to pay Parbat Siyani Construction Ltd Kes39 million for unlawfully terminating a contract that was for the provision and installation of a prefabricated exhibition centre at the Kenyatta International Convention Centre (KICC) grounds. 

While delivering a ruling on Thursday, March 13, Justice Lawrence Mugambi faulted the government, noting that it violated the Constitution and used delaying tactics in failing to sign the award within the stipulated time.

“In my view, the respondents employed delaying tactics. Their actions were not in accordance with the principles of procurement as set out in the Constitution,” the judge ruled.

Mr. Justice Mugambi also criticized KICC’s management for failing to respond to the contractor’s letters. “There was no transparency and accountability on the part of the respondents. Public bodies must not be allowed to abuse their powers,” he ruled.

However, the court stayed the decision for 28 days to allow the government to appeal. State legal representatives requested the court to stay the execution, arguing that the funds would come from public coffers.

In their suit, Parbat Siyani Construction Ltd said it was awarded a contract in 2019 but the government terminated it in its final stages of formalisation without providing justifiable reasons.

Meanwhile, KICC had wanted the case dismissed, arguing that no formal contract had been signed, and therefore, the construction company had no legitimate claim.

The construction company explained that although the tender was announced in December 2018, it was officially notified of the award in April 2019 at a price of Kes799 million, inclusive of all taxes. 

The tender validity period was 180 days. After accepting the award, Parbat Siyani Construction Limited visited the site and even began negotiations on the proposed designs. 

However, in April 2020, more than a year later, the firm was informed that the contract had been cancelled due to circumstances beyond KICC’s control.

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