Mobile payment platform maker, Attain Enterprise Solutions, accuses NOCK of illegally terminating its contract.
The rollout of Sh2,000 subsidised cooking gas for the poor faces delay after the court stopped National Oil Corporation of Kenya (NOCK) from awarding the tender for online payment following a row.
The High Court suspended the tender for the mobile phone-based payment system after a tech firm, Attain Enterprise Solutions, sued NOCK for terminating its contract and advertised for fresh tenders.
The mobile platform is key to the delivery of the subsidised gas that is aimed at cutting reliance on kerosene and charcoal.
“That an injunction…is hereby granted restraining the defendant from cancelling the award granted to the plaintiff by the letter dated 10th July, 2017 pending the inter parties hearing,” ordered Justice Joseph Onguto.
On Monday, NOCK through its lawyer asked the High Court to dismiss the case, noting that it had no valid contract with the firm.
Under the plan, which has been piloted in Machakos and Kajiado counties, the Ministry of Energy will buy about one million new cylinders for distribution.
Poor homes will acquire 6kg gas cylinders with cooking accessories at a discounted price of Sh2,000, down from about Sh5,000.
Attain Enterprise Solutions, in court papers claims it was awarded the contract on July 10 after which it embarked on developing the platform as spelt out in the contract. It says it had also started discussing the financials, where it was agreed that NOCK will pay Attain Sh30 million in three instalments.
It further claims that it was further agreed NOCK will pay Attain Sh20 for every transaction carried out via the USSD platform to be developed by the firm. It says it initiated discussion with various banks and mobile service providers to realise the project.
All the time, it says, NOCK was satisfied with its project and even submitted to its board the report of the progress for approval.
However, it claims NOCK terminated the contract on December 11, 2017. It adds that its efforts to reach amicable solutions have been frustrated by “non-willingness of NOCK”.
Attain risks to incur Sh690 million loss, being the sum total of already incurred expense and projected income, it says.
A document availed in court shows that the system will be a communication platform through bulk SMS.
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