Home Court Round-Up Court Upholds Dismissal of Tender Dispute Over Timing and Jurisdiction

Court Upholds Dismissal of Tender Dispute Over Timing and Jurisdiction

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The Court of Appeal in Nairobi dismissed an appeal by Amazon Transporters Limited challenging a procurement decision by the Kenya National Bureau of Statistics (KNBS).

The case centered on the award of a car hire services tender to Jennygo Enterprises Limited, amid allegations of procedural breaches and late filing of review applications.

The appellant argued that the Public Procurement Administrative Review Board (PPARB) had jurisdiction to review the award, citing a re-evaluation process that they claimed created a new cause of action.

However, the Court upheld the High Court’s decision, emphasizing that the Request for Review was filed outside the statutory 14-day window after the appellant’s knowledge of the breach on August 1, 2024.

The Court clarified that under Section 167(1) of the Public Procurement and Asset Disposal Act, challenges must be lodged within 14 days of the breach’s discovery or notification of award.

The Court further held that Section 167(4)(c) of the Act excludes the review of procurement proceedings where a valid contract has already been signed in accordance with Section 135 of the Act.

Since the contract was signed on August 14, 2024, within the tender validity period, the review body lacked jurisdiction.

Additionally, the Court dismissed the appellant’s argument that the jurisdiction was ousted by Section 39 of the Act, reaffirming that judicial review avenues remain available for disputes.

The judges underscored the importance of timely challenges to safeguard the integrity of procurement processes and prevent endless litigations that could delay public projects.

The appeal was accordingly dismissed, reinforcing the principle that procurement disputes must be handled within strict legal timelines and procedures.

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