Trans Nzoia County Assembly ordered to pay firm Sh10m for breach of contract
A court in Kitale has ordered the Trans Nzoia County Assembly to pay close to Sh10 million in damages to an aggrieved contractor for unfairly terminating a Sh13.3 million agreement for putting up a perimeter wall around the Speaker’s official residence in 2015.
What you need to know:
- The perimeter wall around the Speaker’s official residence was 90 per cent complete when the contract was terminated.
- The firm submitted its bid for the tender to build the wall at the Speaker’s official residence in Milimani Estate, Kitale, which it won.
- On September 23, 2013, a contract was signed worth Sh13,346,342.
A court in Kitale has ordered the Trans Nzoia County Assembly to pay close to Sh10 million in damages to an aggrieved contractor for unfairly terminating a Sh13.3 million agreement for putting up a perimeter wall around the Speaker’s official residence in 2015.
The structure was 90 per cent complete when the contract was terminated.
Senior Principal Magistrate Mary Immaculate Morang’a found that the assembly acted illegally when it terminated the contract awarded to Mika Investment Company Limited on grounds that the Ethics and Anti-Corruption Commission (EACC) had raised issues with the tendering.
According to court documents seen by the Nation, the firm submitted its bid for the tender to build the wall at the Speaker’s official residence in Milimani Estate, Kitale, which it won.
On September 23, 2013, a contract was signed worth Sh13,346,342.
Documents the plaintiff filed in court state that, they had satisfactorily carried out 90 per cent of the work when the defendant, intentionally and in breach of the contract, proceeded to award the contract to a different entity.
Met requirements
Mika Investment Director Michael Kariuki insisted that he had met all the requirements of procurement upon which he was awarded the contract in 2013.
“I proceeded with the construction after following the due processes of procurement and award of contract. I used my own capital to commence the construction, upon which I made a request for partial payment of Sh3.5 million,” Mr Kariuki said.
He said county assembly officials led by the project manager rushed to the scene to inspect progress upon which he was issued a voucher for payment on December 2, 2014.
Still, he did not receive the money despite claiming it on several occasions.
He later learned that the project had attracted the attention of EACC, with two senior officials at the county assembly being charged at an Eldoret court, leading to its suspension and freezing of the firm’s accounts.
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Mr Kariuki said he could not pay taxes and dividends worth Sh6,531,419 because of the failure of the defendant to pay him.
Mr Bernard Simiyu, a procurement officer at the assembly, told the court that the project was suspended and payment stopped pending a hearing and determination of the case where the officials were eventually vindicated.
The court found the assembly in breach of contract because there was no evidence of a contravention of procurement rules in line with the Public Procurement and Assets Disposal Act.
“The plaintiff will have a judgment against the defendant of a special damage of Sh9,841,624, interest at court rates from the date of filing suit until payment [is made] in full,” she ruled.
