The High Court has agreed to hear a Sh339 million compensation claim filed by a contractor against the Kenyatta International Convention Center (KICC) after the cancellation of a tender for the installation of a prefabricated exhibition centre at the Convention grounds.
Parabat Siyani Construction Ltd accused the KICC management of cancelling the contract, whose total sum was Sh779 million, without giving justifiable reasons in contravention of the constitution.
KICC, however, wanted the case dismissed arguing that no contract had been signed hence, the construction company has no claim.
Further, the court heard that due process and the law were followed in procuring and eventual cancellation of the proposed tender and the contractor had not raised any constitutional issues to be addressed by the High Court.
“The foregoing discussion has yielded that the Petition cannot be voided on the principle of constitutional avoidance and that there are constitutional issues to be addressed,” Justice Anthony Mrima said.
The company said the tender was announced in December 2018 and it was notified of the award in April 2019, at a price of Sh799 million inclusive of all taxes.
The firm says it accepted the award and made preparations by visiting the site besides commencing negotiations on the proposed designs.
The court heard that the firm was notified in April 2020 that the contract had been cancelled due to circumstances beyond KICC’s control.
The firm wants the court to declare that the termination of the tender without justifiable reasons was wrong and that KICC should be compelled to compensate it.
