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Court of AppealPartially AllowedCivil Appeal (Mombasa)· [2023] KECA 1457 (KLR)

Space Contractors & Suppliers Investment Limited v Public Procurement Administrative Review Board & 5 others

Court of Appeal
27 November 2023
10,088 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 procurement complaints must be filed within 14 days of each breach and must show actual loss, or the Review Board has no jurisdiction.

What this practically means

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Executive summary

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Space Contractors lost a Kenya Ports Authority housekeeping tender and filed a Request for Review before the Public Procurement Administrative Review Board. The Board struck out the request, holding that the complaints in specified paragraphs were time-barred under section 167(1) of the Public Procurement and Asset Disposal Act read with regulation 203(2)(c) of the Regulations, and that the appellant lacked locus standi for failing to plead loss or damage. The High Court (Sewe, J.) dismissed the appellant's judicial review application, upholding the Board on both jurisdiction and standing while holding that the judicial review proceedings commenced with the filing of the application for leave. On appeal, the Court of Appeal framed four issues. It held, purposively, that where a party opts for the Order 53 route, judicial review proceedings under section 175 commence on the date the leave application is filed, so the High Court application was in time. However, it affirmed the Board and the High Court on the merits: pre-award breaches must be challenged within 14 days of their occurrence, and the appellant's complaints about the advertisement, addenda, a court ruling and alleged delay arose long before notification of award; further, a tenderer invoking section 167(1) must expressly plead loss or damage suffered or risked, which the appellant never did. The Court reiterated, following the Supreme Court in Praxidis Namoni Saisi, that judicial review permits only limited merit analysis of uncontroverted evidence and is not a full merits appeal. On the cross-appeal, the Court held that section 175(7) bars costs only where a Board decision is quashed; since the Board's decision was upheld, costs follow the event, and the Judge gave no reasons for departing from that rule. The appeal was dismissed with costs and the cross-appeal allowed, with the High Court costs of the 2nd and 3rd respondents awarded against the appellant.

Key legal issues

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01

Commencement date of judicial review under section 175 of the Act

Holding

Judicial review proceedings under section 175 commence when the application for leave is filed, not when the substantive motion is filed, where a party opts for the Order 53 route

Reasoning

The Public Procurement and Asset Disposal Act was enacted after the 2010 Constitution under Article 227(2). Interpreting section 175 to require commencement only upon filing of the substantive notice of motion would render challenges to Board decisions illusory given the strict 14-day timeline. A purposive construction achieves timely and fair disposal of procurement disputes, so the leave application marks commencement.

p. 12
02

Jurisdiction of the Review Board over out-of-time requests for review

Holding

The Board correctly held it had no jurisdiction because the appellant's complaints of pre-award breaches were lodged more than 14 days after the occurrence of the alleged breaches

Reasoning

Section 167(1) read with regulation 203(2)(c) demarcates three stages for lodging a request for review. Where the breach is alleged before the award, the 14 days runs from the occurrence of the breach, not from notification of award. Parliament deliberately demarcated these stages to ensure complaints are resolved as they arise. The appellant's complaints about the advertisement, addenda, court ruling and alleged delay arose before the award and were within its knowledge, so the request was out of time.

p. 14
03

Locus standi before the Review Board

Holding

A candidate or tenderer must plead loss or damage suffered or risked to establish standing under section 167(1); the appellant failed to do so

Reasoning

Section 167(1) requires that the person seeking review claim to have suffered or risk suffering loss or damage due to breach of a duty imposed on a procuring entity. Merely contending that some awarded tenderers were unqualified is insufficient; the appellant had to plead the loss it suffered or risked. The Court endorsed James Oyondi on this threshold requirement, while noting that section 174 preserves other legal remedies against irregular tendering.

p. 16
04

Scope of merit analysis in judicial review

Holding

Judicial review permits some measure of merit analysis of uncontroverted evidence but remains a process review, not a full-fledged merits inquiry or appeal

Reasoning

Following the Supreme Court in Praxidis Namoni Saisi, a judicial review court examines whether the decision-maker acted with lawful authority, followed fair procedures, and whether the decision is perverse, irrational or grossly disproportionate, which requires some merit analysis of uncontroverted evidence. But review does not convert the court into an appellate body; it may only quash, not substitute its own preferred view of the evidence.

p. 15
05

Costs where the Board's decision is upheld

Holding

Section 175(7) only bars costs where the Board's decision is quashed; when it is upheld, costs follow the event, and a judge must give reasons for departing from that rule

Reasoning

The Court declined to read section 175(7) as barring costs where the Board's decision is upheld. The general rule that costs follow the event, as affirmed by the Supreme Court in Jasbir Singh Rai, applies, and departure requires good grounds. Since the learned Judge gave no reason for directing each party to bear its own costs, the cross-appeal on costs succeeded.

p. 17

Legal principles established

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  • Where a party opts for the Order 53 route under the Civil Procedure Rules, judicial review proceedings for purposes of section 175 of the Public Procurement and Asset Disposal Act commence on the date the application for leave is filed
  • A request for review must be lodged within 14 days of the occurrence of the breach where the breach is alleged to have occurred before the making of an award, and time does not run from notification of award for such pre-award breaches
  • It is not enough to allege a breach of duty by a procuring entity; a candidate or tenderer seeking administrative review under section 167(1) must plead that it suffered or risked suffering loss or damage as a result of the breach
  • Section 175(7) of the Act, barring costs where a Review Board decision is quashed, does not bar costs where the Board's decision is upheld; in that event the general rule that costs follow the event applies

Court orders

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  1. 1.Dismissal of the appeal with costs
  2. 2.Allowance of the cross-appeal to the extent of setting aside the order directing each party to bear its own costs
  3. 3.Substitution of an order that the costs in the High Court of the 2nd and 3rd respondents be borne by the appellant
On appeal from
High Court of Kenya at Mombasa
Judicial Review application (Sewe, J.)
Jurisdiction invoked
Section 175(4) of the Public Procurement and Asset Disposal Act, No. 33 of 2015

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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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, "Space Contractors & Suppliers Investment Limited v Public Procurement Administrative Review Board & 5 others", Case Analysis (2023). Civil Appeal (Mombasa). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2023/1457/eng@2023-11-27

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