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Court of AppealDismissedCivil Appeal No. 26 of 2016· [2020] KECA 695 (KLR)

Webb Fontaine Group FZ – LLC v Public Procurement and Administrative Review Board & 3 others [2020] KECA 695 (KLR)

Court of Appeal
8 May 2020
5,316 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~21 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal confirmed that procurement review deadlines start when you receive notice of a lost bid, not when feedback discussions end.

What this practically means

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Executive summary

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This is a first appeal from the High Court (Odunga, J), which had dismissed the appellant's judicial review motion seeking to quash the Public Procurement Administrative Review Board's decision striking out the appellant's request for review as time-barred. The tender for an Integrated Customs Management System at KRA, administered by Trade Mark East Africa, was awarded to Bull SAS Limited. The appellant was notified by letter dated 30th April 2015 that its bid was unsuccessful, with an invitation under TMEA policy clause 4.8.1 to seek feedback within a 14-day standstill period. After its complaint was dismissed, it filed a request for review with the Board on 15th June 2015, which the Board struck out as filed outside the 7-day limitation period under Regulation 73. Before the Court of Appeal, the appellant argued that only the letter of 8th June 2015 rejecting its complaint crystallised the right to seek review. The Court held that the letter of 30th April 2015 constituted a valid notification under section 83 of the Public Procurement and Disposal Act, so the right to invoke the Board's jurisdiction accrued on that date; the standstill-period invitation did not suspend the limitation clock. There being no illegality, irrationality or procedural impropriety in the Board's decision, and no provision for extension of time, the appeal failed. The Court also reaffirmed that judicial review addresses the decision-making process rather than the merits, while noting the post-2010 shift toward limited merit review under Article 47 and the Fair Administrative Action Act. The appeal was dismissed with costs to the 2nd, 3rd and 4th respondents. The judgment of the whole Court was delivered jointly; no separate opinions.

Key legal issues

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01

Whether the letter dated 30th April 2015 constituted valid notification of the unsuccessful bid under section 83 of the Act, triggering the limitation period for a request for review

Holding

The letter of 30th April 2015 was a valid communication of the unsuccessful bid; the 14-day limitation period ran from that date even as the appellant pursued a complaint and feedback within the TMEA standstill period.

Reasoning

Section 83 required the procuring entity to notify unsuccessful bidders of their failure. The letter of 30th April 2015 expressly stated the bid was unsuccessful and quantified scores, satisfying section 83. The invitation to seek feedback within a 14-day standstill period under TMEA policy clause 4.8.1 did not suspend the running of time; nothing prevented the appellant from requesting review while seeking clarification. The request filed on 15th June 2015 was therefore out of time, and with no provision for extension of time, the Board rightly declined jurisdiction.

p. 6
02

Whether the Review Board acted unlawfully, irrationally or with procedural impropriety in striking out the request for review on limitation grounds

Holding

The Board committed no illegality, irrationality or procedural impropriety; the appellant failed to bring its judicial review application within the established threshold.

Reasoning

Applying the Pastoli threshold of illegality, irrationality and procedural impropriety, the Court found the Board acted within its mandate under section 98 of the Act and Regulation 77 in determining preliminary issues first. As the request for review was time-barred and no extension was available, the Board's dismissal was lawful and could not be faulted.

p. 6
03

Scope of judicial review and appellate interference with the High Court's discretion

Holding

Judicial review concerns the decision-making process, not the merits; the High Court correctly applied this principle and its discretion could not be disturbed.

Reasoning

The Court rehearsed the Municipal Council of Mombasa formulation and noted the post-2010 shift permitting limited merit review under Article 47 and section 7 of the Fair Administrative Action Act, but reaffirmed that the reviewing court may not substitute its own decision. The Judge was well aware of his remit, applied the correct principles, and considered all relevant circumstances, so no basis existed for appellate interference under the Mbogo v Shah standard.

p. 5

Legal principles established

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  • The right to invoke the jurisdiction of the Public Procurement Administrative Review Board accrues upon unequivocal notification under section 83 of the Public Procurement and Disposal Act that one's bid was unsuccessful, and an invitation to seek feedback during a standstill period does not postpone that right.
  • An appellate court will not interfere with the exercise of discretion by a trial court unless it misdirected itself, considered matters it ought not to have, or failed to consider matters it ought to have considered, arriving at a misguided decision.
  • A reviewing court limits itself to the decision-making process and may not substitute its own decision for that of the administrator, though post-2010 judicial review includes elements of merit review under Article 47 and the Fair Administrative Action Act.

Court orders

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  1. 1.Appeal dismissed with costs to the 2nd, 3rd and 4th respondents

Authorities

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Legislation

  • Public Procurement and Disposal Act, 2005Section 83
  • Public Procurement and Disposal Act, 2005Section 98
  • Public Procurement and Disposal Act, 2005Section 99
  • Public Procurement and Disposal Act, 2005Section 100(4)
  • Public Procurement and Disposal Regulations, 2006Regulation 73
  • Public Procurement and Disposal Regulations, 2006Regulation 77
  • Constitution of Kenya, 2010Article 47
  • Fair Administrative Action ActSection 7

Cases cited (16)

  • R v. Public Procurement Administrative Review Board Ex-parte Noble Gases International Limited & 2 Others
  • Ethics and Anti-Corruption v. Horsebridge Networks Systems (EA) & Another
    (2017) eKLR
  • M/S Master Systems Limited v. Public Procurement Administrative Review Board & 2 Others
    (2015) eKLR
  • Lalji Karsan Rabadia & 2 Others v. Commercial Bank of Africa Limited
    (2015) eKLR
  • Selle & Another –vs- Associated Motor Boat Co. Ltd. & Others
    (1968) EA 123
  • Mbogo & Another v. Shah
    (1968) EA 93
  • United India Insurance Co. Ltd v. East African Underwriters (Kenya) Ltd
    [1985] E.A 898
  • Municipal Council of Mombasa vs Republic & Umoja Consultants Limited
    Nairobi Civil Appeal No. 185 of 2001
  • Republic vs. Kenya Revenue Authority Ex parte Yaya Towers Limited
    (2008) eKLR
  • Suchan Investment Limited vs. Ministry of National Heritage & Culture & 3 others
    (2016) KLR
  • Pastoli v. Kabale District Local Government Council & Others
    [2008] 2 EA 300
  • Reid vs. Secretary of State for Scotland
    [1999] 2 AC 512
  • Council of Civil Service Union v Minister for the Civil Service
    [1985] AC 2
  • Francis Bahikirwe Muntu and others v Kyambogo University
    miscellaneous application number 643 of 2005 (UR)
  • Re An Application by Bukoba Gymkhana Club
    [1963] EA 478
  • Al-Mehdawi v Secretary of State for the Home Department
    [1990] AC 876
On appeal from
High Court of Kenya at Nairobi
Misc. Civil Application No. 250 of 2015
Jurisdiction invoked
First appellate jurisdiction under the Court of Appeal Act over an appeal from the High Court's judicial review decision

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, "Webb Fontaine Group FZ – LLC v Public Procurement and Administrative Review Board & 3 others [2020] KECA 695 (KLR)", Case Analysis (2020). Civil Appeal No. 26 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2020/695/eng@2020-05-08

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