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Court of AppealDismissedCivil Appeal No. 132 of 2018· [2020] KECA 283 (KLR)

Kivuku Agencies v Kenya Airport Authorities Accounting Office & another [2020] KECA 283 (KLR)

Court of Appeal of Kenya
9 October 2020
3,532 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
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The bottom line

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Kenya's Court of Appeal confirmed that when a tender's validity period expires, procuring entities may lawfully start a fresh tender instead of reinstating the losing bidder.

What this practically means

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Executive summary

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The Court of Appeal at Mombasa (Ouko, P., Koome and Musinga, JJ.A) dismissed this appeal against Ogola, J.'s ruling in a judicial review suit brought by Kivuku Agencies against the Kenya Airport Authority. The appellant had tendered for cleaning services at Moi International Airport, claimed to be the lowest bidder, but lost the award after being unable to produce a CR 12 certificate. The Public Procurement Administrative Review Board annulled the award and gave alternative orders: reinstate the appellant within fourteen days if the tender validity subsisted, or start the procurement afresh if it had lapsed. The tender's ninety-day validity expired on 4th August 2017, before the Board's decision of 31st August 2017, so the respondents re-tendered - though belatedly, on 17th October 2017. The High Court quashed that fresh advertisement and ordered a new procurement process within fourteen days, with each party bearing its own costs. Before the Court of Appeal, the appellant argued that validity should run from the award date of 26th July 2017 and that it should have been reinstated and awarded costs. The Court held that section 88 of the Public Procurement and Asset Disposal Act leaves extension of tender validity to the discretion of the accounting officer, that no extension was requested, and that the respondents were simply complying with the Board's alternative orders; hence no illegality, irrationality or procedural unfairness was established. On costs, applying rule 31 of the Court of Appeal Rules and the Mbogo v Shah principles, each party had a measure of success and the Judge's discretion was not wrongly exercised. The appeal was dismissed with each party bearing its own costs.

Key legal issues

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01

Whether the respondents acted unlawfully in cancelling the tender and re-tendering afresh instead of reinstating the appellant

Holding

The Board's orders were alternative: reinstate the appellant if the tender validity subsisted, or start the procurement afresh if the validity period had lapsed. The ninety-day validity had expired on 4th August 2017, before the Board's decision of 31st August 2017, so the respondents lawfully took the alternative option.

Reasoning

The Court held that the tender document indicated validity of ninety days from the date of issue, running from tender opening, not from any later award date as the appellant argued. Section 88 of the Act permits, but does not compel, extension of validity, and the appellant never requested an extension. Compliance with the Board's alternative order was neither illegal, irrational nor procedurally unfair under the Wednesbury standard.

p. 4
02

Whether the High Court Judge erred in declining to award the appellant costs

Holding

The Judge properly exercised his discretion: each party had a measure of success, since the Judge quashed the fresh advertisement of 17th October 2017 (made outside the Board's fourteen-day window) and gave the appellant an opportunity to bid afresh, and there was no finding of a breach of procurement procedure.

Reasoning

Applying rule 31 of the Court of Appeal Rules and the Mbogo v Shah principles, the Court found no misdirection. Costs discretion must be based on good reason; the Judge's reasons were sound given the mixed outcome and the appellant's own failure to participate in the re-tender. The appellate court accordingly declined to interfere with the costs order.

p. 4
03

Whether Articles 22, 23 and 47 of the Constitution and the Fair Administrative Action Act expand the grounds of judicial review

Holding

The constitutional provisions read with section 7 of the Fair Administrative Action Act allow a fusion of traditional common law grounds of review to include some merit review of administrative action, although the court cannot usurp the decision-making power of the administrative body but merely quash errors.

Reasoning

The Court acknowledged the paradigm shift articulated in Suchan Investment Limited, recognising that judicial review is no longer confined to the classic Wednesbury grounds. Nevertheless, the fusion does not permit the court to substitute its own decision for that of the administrative body; it may only quash errors in the decision-making process.

p. 3

Legal principles established

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  • A procuring entity may, at the discretion of its accounting officer, extend a tender validity period under section 88 of the Public Procurement and Asset Disposal Act; the provision is not mandatory and a bidder who makes no request for extension cannot fault the entity for opting to re-tender once the validity period lapses
  • An appellate court will not interfere with a trial judge's discretion on costs unless the discretion was exercised injudiciously, on wrong principles, or on a misdirection resulting in injustice
  • In deciding whether to interfere with an award of costs, an appellate court considers not only the conduct of the parties in the litigation but also the matters which triggered the litigation and the contribution of the party in whose favour costs were withheld to the causation of those factors
  • An applicant for judicial review must demonstrate that the administrative decision complained of is tainted with illegality, irrationality or procedural impropriety

Court orders

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  1. 1.The appeal is dismissed
  2. 2.The respondents are not awarded costs of the appeal
  3. 3.Each party bears its own costs of the appeal

Authorities

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Legislation

  • Public Procurement and Asset Disposal ActSection 87
  • Public Procurement and Asset Disposal ActSection 88(1)
  • Public Procurement and Asset Disposal ActSection 171
  • Constitution of Kenya, 2010Article 22
  • Constitution of Kenya, 2010Article 23
  • Constitution of Kenya, 2010Article 47
  • Fair Administrative Action ActSection 7
  • Civil Procedure Code (Order 27)Order 27
  • Court of Appeal RulesRule 31

Cases cited (5)

  • Emfil Limited vs. Registrar of Titles Mombasa & 2 others
    [2014] eKLR
  • Pastoli vs. Kabale District Local Government Council and Others
    [2008] 2 EA 300
  • Suchan Investment Limited vs Ministry of National Heritage & Culture & 3 Others
    (2016) eKLR 51
  • Edward Sargent vs. Chotabha Jhaverbhat Patel
    [1949] 16 EACA 63
  • Mbogo & Another vs. Shah
    [1968] E.A. 93
On appeal from
High Court of Kenya at Mombasa
Msa. Jud. Rev. Case No. 60 of 2017
Jurisdiction invoked
First appellate jurisdiction under the Court of Appeal Rules (rule 31), on appeal from the High Court in an application for judicial review

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (2)

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

Cite this brief

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Cite this brief

Caselaw, "Kivuku Agencies v Kenya Airport Authorities Accounting Office & another [2020] KECA 283 (KLR)", Case Analysis (2020). Civil Appeal No. 132 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2020/283/eng@2020-10-09

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