Energy Regulatory Commission v SGS Kenya Ltd & 2 others (Civil Appeal 341 of 2017) [2018] KECA 616 (KLR)
The bottom line
#Kenya's Court of Appeal confirmed that courts reviewing procurement decisions cannot re-weigh evidence or force agencies to award tenders to losing bidders.
What this practically means
#Executive summary
#Key legal issues
#Limits of judicial review: process versus merits
The learned Judge erred by making value judgments on the sufficiency, weight and quality of the evidence of technological change; that is the province of an appeal, not judicial review.
The Judge's language about evidence being 'clear', 'cogent', 'substantial', 'real' and 'tangible' showed he was weighing the evidence as on appeal. Following the long line of authority including OJSC Power Machines and Chief Constable v Evans, the Court held that the true province of judicial review is procedural impropriety, and that a public body has jurisdiction to err on the merits without attracting certiorari. Only a complete absence of evidence amounting to Wednesbury irrationality would justify interference.
Wednesbury unreasonableness as the threshold for quashing a procuring entity's termination of a tender
The Board's decision upholding the termination under section 63(1)(a) for substantial technological change was rational and far from Wednesbury unreasonable.
The Board made a categorical finding that the termination was based on the evaluation committee's general observations by technically qualified members, and considered the wider public interest advantages of the new technology, including curbing fuel adulteration. The Judge hoisted his own sense of reasonableness above that of the Board. Following Wednesbury, only 'something overwhelming' justifies intervention, and that threshold was not met.
Availability of mandamus to compel award of a tender
Mandamus was wholly misconceived because award of tenders is discretionary and the evaluation committee's recommendation was not binding on the accounting officer.
Mandamus against public bodies is limited to performance of a clear and unqualified statutory duty. Since the statute and tender documents recognised termination, and the accounting officer retained discretion to accept or reject the committee's recommendation, the order directing award to SGS usurped powers belonging to other entities and denied the accounting officer a statutory discretion.
Deference to specialized tribunals
The Review Board, being a specialized statutory tribunal better equipped than the High Court for procurement disputes, should be shown deference.
The Board has wide powers under section 98 of the Act, may engage experts under Reg. 89, and the administrative review it conducts is in nature an appeal. Kenya Pipeline v Hyosung Ebara establishes that its decisions within jurisdiction should not be lightly interfered with; the Judge ought to have been more circumspect.
Legal principles established
#- Judicial review is concerned with the process, not the merits, of an administrative decision; a court in judicial review must not weigh the sufficiency of evidence supporting the decision
- Insufficiency of evidence before a public body is not a ground for judicial review remedies; only a decision so unreasonable that no reasonable authority could reach it (Wednesbury unreasonableness) will be quashed
- Mandamus cannot issue to compel a discretionary statutory act in a specific way; it lies only for performance of a clear and unqualified public duty
- A tender evaluation committee's recommendation does not divest the accounting officer of discretion to accept or reject it; a court cannot command the award of a tender
- The decision of the specialized Public Procurement Administrative Review Board, being akin to an appeal, should not be lightly interfered with by the High Court
Court orders
#- 1.The appeal is allowed with costs
- 2.The orders of the learned Judge (certiorari, prohibition and mandamus) are set aside in entirety
- 3.Substituted therefor is an order dismissing SGS's substantive motion with costs
- 4.The appellant shall have the costs of this appeal
- On appeal from
- High Court of Kenya
- Judicial Review Application (substantive motion filed 16th August 2017), judgment in SGS Kenya Limited vs. Energy Regulatory Commission
- Jurisdiction invoked
- Appellate jurisdiction over the High Court's judicial review judgment (Supreme Court Act/Court of Appeal appellate jurisdiction; the judgment does not state a specific constitutional provision)
Key timeline
#Practical implications
#Frequently asked questions
#Later judgments citing this (8)
#Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.
- Kalmar Finland Oy v Public Procurement Administrative Review Board & 4 others[2026] KECA 1500 (KLR)24 Jul 2026
- Rose Ndanu Mackenzie & 4 others v Barry Manza Mackenzie & 1 other[2026] KECA 1131 (KLR)12 Jun 2026
- Wanjiku (Suing as the Heir and Administrator of the Estate of the Late Stephen Juma Sapaya) v Kombo & 4 others (Environment and Land Case 165 of 2014) [2025] KEELC 8576 (KLR)[2025] KEELC 8576 (KLR)5 Dec 2025
- Wanjigi v Chebukati & 2 others[2022] KECA 724 (KLR)29 Jul 2022
- Republic v Public Procurement Administrative Review Board ex parte CMC Motors Group Limited[2020] KEHC 9181 (KLR)17 Jan 2020
- Republic v Public Procurement Administrative Review Board & another, ex parte Nairobi City Water and Sewerage Company Limited[2019] KEHC 4757 (KLR)8 Aug 2019
- Republic v Public Procurement Administrative Review Board ex parte Fourway Construction Limited[2019] KEHC 8471 (KLR)10 Apr 2019
- Republic v Public Procurement Administrative Review Board & another Ex-parte Kenya Veterinary Vaccines Production Institute[2018] KEHC 1996 (KLR)20 Nov 2018
Cite this brief
#Cite this brief
Caselaw, "Energy Regulatory Commission v SGS Kenya Ltd & 2 others (Civil Appeal 341 of 2017) [2018] KECA 616 (KLR)", Case Analysis (2018). Court of Appeal Civil Appeal (Nairobi). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2018/616/eng@2018-05-11
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.