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Case Brief · caselaw.co.ke
Court of AppealDismissedCivil Appeal No. 281 of 2016· [2019] KECA 67 (KLR)

Ernie Campbell & Company Limited v The National Housing Corporation

Court of Appeal of Kenya
20 December 2019
2,201 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Court of Appeal dismissed a contractor's tender challenge because the project had already been awarded to someone else, making the case pointless.

What this practically means

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Executive summary

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The National Housing Corporation advertised tender No. NHC/TECH/422/2013 for the construction of residential flats and shops at Kibera. After evaluation reports of March 2014 and March 2015 recommended different bidders (Dickways Construction Company Limited and the appellant respectively), the Tender Committee resolved to award the tender to the appellant, and a letter of 27th August 2015 notified it that it was the successful bidder, subject to contract. An incoming management terminated the procurement proceedings on 12th and 26th January 2016 under section 36 of the Public Procurement and Disposal Act, 2005. The appellant sought certiorari, prohibition and mandamus, but Korir, J dismissed the application, holding the termination lawful, the court's jurisdiction ousted by section 36(6), and the appellant obliged to first seek review from the Review Board. On appeal, the Court of Appeal (Koome, Sichale and ole Kantai, JJA) affirmed. It held that the transitional provisions of the Public Procurement and Asset Disposal Act, 2015 preserved the repealed Act for proceedings commenced before 7th January 2016, that no contract had been formed absent a written contract under section 68(3), and that the termination fell within section 36 whose ouster clause barred review. Decisively, the tender had been re-advertised in November 2016 and awarded to M/s Endveavours Construction Company Limited in February 2017, so the prayers were overtaken by events; granting them would be a futile academic exercise. The appeal was dismissed with costs to the respondent.

Key legal issues

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01

Mootness of the appeal

Holding

The appeal was dismissed as overtaken by events because the tender had been re-advertised and awarded to a third party, M/s Endveavours Construction Company Limited, rendering the prayers for certiorari, prohibition and mandamus futile.

Reasoning

The Court noted that the tender was re-advertised on 29th November 2016 and awarded on 22nd February 2017 to a third party. Relying on Tanzania Roads Agency v Kondan Singh Construction, Alcon International and Environment Action Network Ltd v Joseph Eryau, it held that granting the orders sought would be futile and tantamount to an academic exercise, since court orders must have practical effect and be capable of enforcement.

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02

Applicable procurement regime

Holding

The Public Procurement and Disposal Act, 2005 (the repealed Act) governed the proceedings, because the procurement commenced before the Public Procurement and Asset Disposal Act, 2015 came into operation on 7th January 2016.

Reasoning

The Court applied the transitional provisions of the 2015 Act, which preserved the prior law for proceedings commenced before the commencement date. The appellant's reliance on section 63 of the 2015 Act was therefore misplaced, and the termination was properly assessed under section 36 of the repealed Act.

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03

Validity of the termination under section 36 of the repealed Act

Holding

The termination of the procurement proceedings was permitted under section 36 of the repealed Act, whose ouster clause bars review by the Review Board or a court.

Reasoning

The evaluation reports of 11th March 2014 and 12th March 2015 had identified different successful bidders (Dickways Construction Company Limited and the appellant respectively), and an incoming management terminated the proceedings. Section 36(6) of the repealed Act expressly provided that a termination under that section shall not be reviewed by the Review Board or a Court. No written contract had been formed under section 68(3).

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Legal principles established

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  • A procuring entity may validly terminate tender proceedings under section 36 of the repealed Public Procurement and Disposal Act, 2005 where evaluation reports identify different successful bidders, and such termination is insulated from review by the Review Board or a court
  • Procurement proceedings commenced before 7th January 2016 continue to be governed by the repealed Public Procurement and Disposal Act, 2005 by virtue of the transitional provisions
  • No contract is formed in public procurement until a written contract is entered into; a letter of notification of award does not conclude the contract
  • Courts will dismiss appeals whose reliefs have been overtaken by events rather than pronounce academic determinations

Court orders

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  1. 1.The appeal is dismissed with costs to the respondent
On appeal from
High Court of Kenya at Nairobi
Judicial Review Misc. Application No. 48 of 2016
Jurisdiction invoked
First appeal to the Court of Appeal against the judgment of the High Court in a judicial review application (statutory appellate jurisdiction)

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Ernie Campbell & Company Limited v The National Housing Corporation", Case Analysis (2019). Civil Appeal No. 281 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2019/67/eng@2019-12-20

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.