The state has been ordered to pay Parbat Siyani Construction Limited over Sh 39 million for unlawfully terminating a contract for the provision and installation of a prefabricated exhibition center at the KICC grounds.
However, Justice Lawrence Mugambi has stayed the decision for 28 days to allow the government to review and appeal the ruling.
While awarding the contractor the compensation, Justice Mugambi faulted the state for employing delaying tactics and failing to sign the award within the stipulated time ruling 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 ruled
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.
In the case, Parbat Siyani Construction Limited was awarded the contract in 2019, but the government terminated the deal at its final stages. The company then moved to court seeking Sh 339 million in compensation, claiming it had incurred significant losses while preparing for the project.
Justice Mugambi criticized the KICC 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.
