Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
Court of AppealDismissedCivil Appeal No. 35 of 2018· [2019] KECA 684 (KLR)

Ederman Property Limited v Lordship Africa Limited & 2 others [2019] KECA 684 (KLR)

Court of Appeal
5 April 2019
6,622 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~26 min to read original · ~4 min brief

The bottom line

#

Kenya's Court of Appeal confirmed that a public procurement contract signed before the 14-day challenge window ends is illegal and cannot stand.

What this practically means

#

Executive summary

#
The Court of Appeal (Ouko, P, Gatembu Kairu and ole Kantai, JJA) dismissed an appeal by Ederman Property Limited against a High Court decision of Aburili, J which, in judicial review proceedings brought by Lordship Africa Limited, quashed the Review Board's decision striking out Lordship Africa's request for review, quashed Nairobi City County's award of tender No. NCC/UR & H/T/514/2016-2017 to Ederman and the entire procurement proceedings, and directed a fresh procurement process. The County had notified the successful bidder directly while sending the unsuccessful bidder's notification by registered post, and signed a contract with Ederman on 17th August 2017 before the fourteen-day statutory challenge period had expired. The Court held that the Review Board erred in declining jurisdiction solely because a contract had been signed and the request was filed out of time; it was duty-bound first to investigate whether the contract complied with Section 135 of the Public Procurement and Asset Disposal Act. A contract signed before the challenge period lapsed contravened the Act, was against public policy, illegal and null and void. The Court accepted that while judicial review traditionally concerns process rather than merits, the Constitution of Kenya, 2010 and the Fair Administrative Action Act, 2015 expanded the grounds of review, and the Judge had acted within her mandate in examining these process issues. The appeal was dismissed with costs to the 1st respondent.

Key legal issues

#
01

Jurisdiction of the Review Board where a contract has already been signed

Holding

The Review Board erred in declining jurisdiction solely because a contract had been signed; it had a duty first to determine whether the contract was signed in accordance with Section 135 of the Act.

Reasoning

Section 135(3) requires a contract to be signed not before fourteen days have elapsed following notification of award, within the tender validity period. The Board made no reference to whether the contract allegedly signed complied with Section 135. Declining jurisdiction without that inquiry amounted to improper deprivation of jurisdiction, which is as bad as acting without or in excess of jurisdiction. The Judge was entitled to correct that error in judicial review proceedings.

p. 5
02

Legality of the contract signed before expiry of the challenge period

Holding

The contract signed on 17th August 2017, before fourteen days had elapsed from notification, contravened Section 135 of the Act and the rules of natural justice and was null and void.

Reasoning

Even taking the date of posting (4th August 2017) as the date of notification, the aggrieved bidder had until at least 18th August 2017 to lodge a request for review. Signing the contract on 17th August 2017 undermined the statutory challenge window and natural justice. A contract entered in contravention of the law is illegal, against public policy and cannot be allowed to stand.

p. 5
03

Scope of judicial review after the Constitution, 2010 and the Fair Administrative Action Act

Holding

The High Court acted within its mandate: the issues it examined were process issues, and even on the merits its approach was permissible under the expanded grounds of review.

Reasoning

Judicial review traditionally concerns the decision-making process rather than merits, but since the Constitution of Kenya, 2010 and the Fair Administrative Action Act, 2015 the grounds of review have been expanded. The defects found here - differential notification of bidders, breach of Section 135, and the Board's improper deprivation of its own jurisdiction - were process issues squarely within judicial review.

p. 6
04

Differential notification of bidders

Holding

The 3rd respondent breached the Act and public policy by notifying the successful bidder through an efficient direct process while sending the unsuccessful bidder's notification by registered post, and by signing a contract before the challenge period expired.

Reasoning

Section 126(4) of the Act requires simultaneous written notification to unsuccessful bidders with reasons. The County chose different methods of notification which the statute and principles of reasonableness did not allow, amounting to preferential treatment of the appellant and a breach of natural justice.

p. 6

Legal principles established

#
  • Before the Public Procurement Administrative Review Board declines jurisdiction under Section 167(4)(c) on the ground that a contract has been signed, it must first investigate whether the contract was signed in accordance with Section 135 of the Public Procurement and Asset Disposal Act; the mere fact that a contract has been signed does not necessarily deprive the Board of jurisdiction.
  • A procuring entity may not sign a procurement contract before the expiry of the fourteen-day period allowed to aggrieved bidders to lodge a request for review; a contract so signed is in breach of Section 135 of the Act, is illegal and against public policy and cannot stand.
  • A procuring entity may not use different methods of notification towards a successful bidder and unsuccessful bidders; where a breach of statute is brought to the attention of the court, the court must investigate it.
  • While judicial review traditionally concerns the decision-making process and not the merits, since the Constitution of Kenya, 2010 and the Fair Administrative Action Act, 2015 the grounds of review have been expanded, permitting the High Court to examine whether the process was undertaken within the law.

Court orders

#
  1. 1.The appeal is dismissed with costs to the 1st respondent

Authorities

#

Legislation

  • Constitution of KenyaArticle 10
  • Constitution of KenyaArticle 165(6) and (7)
  • Constitution of KenyaArticle 227
  • Public Procurement and Asset Disposal Act, 2015Section 87(3)
  • Public Procurement and Asset Disposal Act, 2015Section 126(3), (4) and (5)
  • Public Procurement and Asset Disposal Act, 2015Section 135, including Section 135(3)
  • Public Procurement and Asset Disposal Act, 2015Section 167, including Section 167(4)(c)
  • Public Procurement and Asset Disposal Act, 2015Section 175(7)
  • Fair Administrative Action Act2015

Cases cited (6)

  • Kenya Pipeline Company Limited vrs. Glencore Energy (U.K) Limited
    [2015] eKLR
  • Holman vs. Johnson
    (1775 – 1802) All ER 98
  • Municipal Council of Mombasa v. Republic & Another
    [2002] eKLR
  • Suchan Investment Limited vs. Ministry of National Heritage & Culture & 3 Others
    Civil Appeal No. 46 of 2012
  • Kenya Pipeline Co. Ltd vs. Hyosung Ebara Co. Ltd
    [2012] eKLR
  • Rentco East Africa Ltd, Lantech Africa Ltd, Toshiba Corporation Consortium vs. Public Procurement Administrative Review Board & Another
    [2017] eKLR, Civil Appeal No. 24 of 2017
On appeal from
High Court of Kenya at Nairobi
Judicial Review Miscellaneous Application No. 589 of 2017
Jurisdiction invoked
Appellate jurisdiction of the Court of Appeal over the High Court's judicial review decision (Constitution of Kenya, 2010); appeal against orders of certiorari and mandamus issued by Aburili, J

Key timeline

#

Practical implications

#

Frequently asked questions

#

Later judgments citing this (1)

#

Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

#

Cite this brief

Caselaw, "Ederman Property Limited v Lordship Africa Limited & 2 others [2019] KECA 684 (KLR)", Case Analysis (2019). Civil Appeal No. 35 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2019/684/eng@2019-04-05

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