Gov’t ordered to pay company Ksh.39M for unlawful termination of KICC contract

The government has suffered a setback after the High Court ordered it to pay Parbat Siyani Construction Limited over Ksh.39 million for unlawfully terminating a contract for the provision and installation of a prefabricated exhibition centre at the Kenyatta International Convention Centre (KICC) grounds. 

However, the court stayed the decision for 28 days to allow the government to review and appeal the ruling. 

While awarding the contractor the compensation, Justice Lawrence Mugambi faulted the government for employing delaying tactics and failing to sign the award within the stipulated time.

He ruled that its conduct was in violation of the Constitution. 

“There was no transparency and accountability on the part of the respondents. Public bodies must not be allowed to abuse their powers,” the judge stated. 

The government, through its legal representatives, requested the court to stay the execution of the judgment, arguing that the funds would come from public coffers and that they intended to appeal. 

Parbat Siyani Construction Limited was awarded the contract in 2019, but the government terminated the deal in its final stages.

The company then moved to court seeking Ksh.339 million in compensation, claiming it had incurred significant losses while preparing for the project. 

Justice Mugambi criticised KICC’s management for failing to respond to the contractor’s letters, stating that their conduct lacked transparency. 

“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