KTDA House./FILE
The High Court temporarily barred the Kenya Tea Development Agency and its subsidiary, Chai Trading Company Limited, from executing or implementing a multi-million shilling security tender pending the determination of a case challenging the award process.
The order follows an application filed by Anthony Manyara and Youth Advocacy Africa, who accuse KTDA of irregularly awarding the tender for the provision of security services to a preferred bidder in violation of principles of fairness and transparency.
In the suit filed through Okoth Elly & Company Advocates, the petitioners claim that KTDA and Chai Trading had already initiated steps toward signing or partially executing the contract, an action they argue could render the case useless if the tender execution is not stopped.
“The defendants have already initiated steps towards execution of a contract with the said bidder and are in the process of signing, or may have already partially executed, the contract, actions which may occur at any moment, thereby extinguishing the plaintiffs’ rights and rendering this suit and application nugatory,” the petitioners said.
The petitioners, who are long-term service providers to KTDA, argue that they have a legitimate commercial interest in ensuring that the procurement process is conducted lawfully and competitively.
Through lawyer Elly Okoth, the petitioners contend that they stand to suffer irreparable harm, including permanent loss of business opportunity, reputational damage, and loss of client confidence, if the tender is not halted.
“The defendants’ actions constitute a breach of legitimate expectation and bad faith, as they have disregarded their own tender documents and internal procurement policy,” states the application.
While KTDA is a private entity not directly governed by the Public Procurement and Asset Disposal Act, the petitioners maintain that it is still bound by principles of fairness, transparency, and good corporate governance.
The court was asked to issue conservatory orders restraining KTDA and Chai Trading Company from signing, implementing, or giving effect to the tender award until the case heard and determined.
Justice Moses Ado of the Commercial division of the High Court in Nairobi granted orders stopping the execution of the tender as was prayed.
The court certified the matter urgent and directed that the respondents be served forthwith and responses filed in three days ahead of mention on November 4.
