[2016] KEHC 2273 (KLR)

[2016] KEHC 2273 (KLR)

The court found that while the Board addressed most issues lawfully and rationally, it failed to consider the applicant's argument regarding statutory preference and reservation for local bidders as required by Section 39(8) of the Public Procurement and Disposal Act, 2005 and Regulation 28 of the 2006 Regulations. This omission constituted a failure to consider a relevant matter, rendering the Board's decision incomplete. However, the court held that it could not itself determine the issue of preference, as this would usurp the Board's statutory mandate. Instead, the court suspended the Board's decision and the contract awarded, remitting the issue of preference back to the Board for...

Citation
[2016] KEHC 2273 (KLR)
Parties
Applicant: Microhouse Technologies Ltd; Respondent: Public Procurement Administrative Review Board; Respondent: National Industrial Training Authority; Interested Party: Coretech Solutions & Systems Limited
Court
High Court
Court Station
High Court at Nairobi (Milimani Commercial Courts)
Jurisdiction
Kenya
Judgment Date
1 July 2016
Case Number
Judicial Review Miscellaneous Application 334 of 2015
Procedural Posture
Judicial Review Application / Judgment
Outcome
Application partially allowed; Board's decision and contract suspended pending Board's determination on preference issue; other prayers dismissed; each party to bear own costs.
Legal Topics
Public Procurement, Judicial Review, Tender Award Process, Preferential Treatment, Legitimate Expectation, Natural Justice
Source Language
English
Administrative Law Commercial and Corporate Public Procurement Judicial Review Tender Award Process Preferential Treatment Legitimate Expectation Natural Justice

Case Brief

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Parties

Microhouse Technologies Ltd

Applicant

Public Procurement Administrative Review Board

Respondent

National Industrial Training Authority

Respondent

Coretech Solutions & Systems Limited

Interested Party

Procedural Posture

Judicial Review Application / Judgment

Legal Issues

  1. 1 Whether the Public Procurement Administrative Review Board acted legally, rationally, and within the rules of natural justice in dismissing the applicant's request for review.
  2. 2 Whether the Board failed to consider the issue of preference and reservations as required by procurement law.
  3. 3 Whether the applicant's financial bid was tampered with and if the Board properly addressed this allegation.

Ratio Decidendi

The court found that while the Board addressed most issues lawfully and rationally, it failed to consider the applicant's argument regarding statutory preference and reservation for local bidders as required by Section 39(8) of the Public Procurement and Disposal Act, 2005 and Regulation 28 of the 2006 Regulations. This omission constituted a failure to consider a relevant matter, rendering the Board's decision incomplete. However, the court held that it could not itself determine the issue of preference, as this would usurp the Board's statutory mandate. Instead, the court suspended the Board's decision and the contract awarded, remitting the issue of preference back to the Board for...

Court Disposition

Application partially allowed; Board's decision and contract suspended pending Board's determination on preference issue; other prayers dismissed; each party to bear own costs.

Orders

  • The decision of the Board dated 25th September, 2015 is suspended pending the Board's determination on the issue of preference.
  • The award of the tender and the contract between the Procuring Entity and Interested Party is suspended pending the Board's determination.