- High Court orders government to compensate Parbat Siyani Construction Ltd.
- The company was awarded Ksh 39 million for unlawful contract termination.
- Justice Lawrence Mugambi blamed the government for delays and lack of transparency.
- The government plans to appeal the ruling.
The High Court in Nairobi has directed the government to pay Parbat Siyani Construction Limited Ksh 39 million after unlawfully terminating its contract for the construction of a prefabricated exhibition centre at the Kenyatta International Convention Centre (KICC) grounds.
Justice Lawrence Mugambi, in his ruling, criticized the government for deliberate delays and failure to finalize the contract as required. He noted that state agencies should uphold fairness in contractual agreements.
“The conduct of KICC’s management, including failure to respond to the contractor’s letters, lacked transparency,” stated Justice Mugambi.
The government, through its legal team, sought a stay on the implementation of the judgment, arguing that the compensation funds would come from public resources and that they intended to challenge the decision in court.
Disputed Contract Dates Back to 2019
Parbat Siyani Construction Limited was awarded the contract in 2019, but the government abruptly cancelled it during the final stages. The company then sued for Ksh 339 million, citing significant financial losses incurred in project preparations.
The court’s ruling now places pressure on the government to honor contractual obligations and avoid unnecessary financial losses due to mismanagement and stalled projects.
