The government has faced a legal setback after the High Court directed it to compensate Parbat Siyani Construction Limited with over Ksh.39 million.
This ruling follows the unlawful termination of a contract to install a prefabricated exhibition center at the Kenyatta International Convention Centre (KICC) grounds.
Justice Lawrence Mugambi, who presided over the case, criticized the government for delays and failure to sign the award within the required timeline. The court found that these actions violated constitutional principles of transparency and accountability.
“There was no transparency and accountability on the part of the respondents. Public bodies must not be allowed to abuse their powers,” Justice Mugambi stated.
Following the ruling, government lawyers requested a stay of execution, arguing that the compensation would be drawn from public funds and that they intended to appeal. The court granted a 28-day stay to allow for a review.
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Parbat Siyani Construction Limited was initially awarded the contract in 2019. However, the government canceled the deal when it was near completion. The company then filed a lawsuit seeking Ksh . 339 million in damages, citing significant financial losses incurred during the project’s preparation.
Justice Mugambi further reprimanded KICC’s management for failing to address the contractor’s concerns, emphasizing that such actions violated procurement principles outlined in the Constitution.
“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,” he ruled.
