Small firms win as court scraps mandatory deposits in tender disputes

Milimani Law Courts

The Milimani Law Courts in Nairobi.

Photo credit: File | Nation Media Group

The High Court has abolished mandatory financial deposits for procurement disputes, removing one of the biggest financial barriers facing companies seeking to challenge the award of government tenders.

The court declared unconstitutional provisions of the Public Procurement and Asset Disposal Act and the Public Procurement and Asset Disposal Regulations, 2020, that required bidders to pay deposits linked to contract values before filing cases before the Public Procurement Administrative Review Board or seeking judicial review in the High Court.

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