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Small ClaimsDismissedKitale SCC CC. No. E032 of 2024· [2024] SCC 20 (KLR)

Guyo & another t/a Jao Mumias Garments v Board of Management St Joseph’s Boys High School Kitale & another (Commercial Claim E082 of 2024) [2024] SCC 20 (KLR)

Small Claims Court
28 October 2024
2,560 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~10 min to read original · ~4 min brief

The bottom line

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Kenya's Small Claims Court refused to pay a supplier Kshs. 875,000 because the school job skipped mandatory public procurement rules, voiding the contract entirely.

What this practically means

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Executive summary

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The Claimants sued for Kshs. 875,000/= being the cost of building materials supplied and soundproofing/refurbishment services rendered to the 1st Respondent's music room in April 2022. The 1st Respondent denied liability, asserting there was no tender or prequalification, while the 2nd Respondent (the school principal) acknowledged the goods were ordered by the school and the bill was valued and approved by the finance committee. The matter proceeded by consent under section 30 of the Small Claims Court Act. The court framed the issues as whether a valid, enforceable contract existed and the remedies available, and additionally addressed the joinder of the 2nd Respondent. Relying on Article 227(1) of the Constitution and the Public Procurement and Assets Disposal Act, 2015, and on authorities including Royal Media Services v IEBC, Pakater Investment, and Shabwali Secondary School v Vwinah, the court held that supply to a public entity must follow competitive procurement; the Sale of Goods Act could not cure the procedural breach since the 1st Respondent is a public entity. Having produced no tender documents, letter of offer, or evidence of due diligence, the Claimants and the 2nd Respondent breached the procurement statute, rendering the contract void ab initio and unenforceable. The court sympathized with the Claimants but declined enforcement, urging law reform to make errant public officials compensate contractors. On joinder, the court held the 2nd Respondent properly joined because he acted beyond his authority, losing principal immunity. The claim was dismissed with costs of Kshs. 20,000/= to the 1st Respondent, with the 2nd Respondent bearing the costs of the claim.

Key legal issues

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01

Existence of an enforceable contract for supply of goods and services to a public entity

Holding

No enforceable contract existed; the engagement breached Article 227(1) of the Constitution and the PPAD Act, 2015, rendering the contract void ab initio

Reasoning

The Claimants supplied goods and rendered soundproofing services, corroborated by a handing over report and audit. However, no tender, prequalification, letter of offer or signed contract was produced. Procurement by public entities must be fair, equitable, transparent, competitive and cost-effective under Article 227(1) and the PPAD Act. The Claimants gave no evidence of compliance or due diligence, and thus breached the statute alongside the 2nd Respondent.

p. 6
02

Applicability of the Sale of Goods Act to imply a contract by conduct

Holding

The Sale of Goods Act does not apply because the 1st Respondent is a public entity governed by constitutional procurement imperatives

Reasoning

While a contract may ordinarily be implied by conduct regardless of procedural breaches, the court held this principle inapplicable where the counterparty is a public body, since supply of goods and services to a public entity is governed by Article 227(1) of the Constitution and the PPAD Act, 2015.

p. 3
03

Joinder of the 2nd Respondent (school principal)

Holding

The 2nd Respondent was properly joined because he acted beyond his scope of authority, losing the immunity principals enjoy when implementing Board decisions

Reasoning

The general rule is that a principal of a public school is not personally liable for acts done as secretary of the Board of Management. However, that immunity is lost where the principal acts without the Board's blessing. The court inferred that the breaches of procurement law may have motivated the joinder, and held the joinder proper.

p. 9

Legal principles established

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  • A supplier of goods or services to a public entity has a statutory duty to ensure compliance with the Public Procurement and Assets Disposal Act, 2015, and cannot rely on the procuring entity's internal non-compliance
  • Contracts procured in contravention of procurement statutes are illegal, void ab initio and unenforceable
  • The principal of a public school cannot be sued personally for acts or omissions arising from lawful official duties as secretary of the Board of Management, unless acting outside the Board's authority

Court orders

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  1. 1.The claim is dismissed with costs of Kshs. 20,000/= to the 1st Respondent
  2. 2.The 2nd Respondent will bear the costs of this claim
Jurisdiction invoked
Small Claims Court Act, section 30 (as consented to by the parties)

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, "Guyo & another t/a Jao Mumias Garments v Board of Management St Joseph’s Boys High School Kitale & another (Commercial Claim E082 of 2024) [2024] SCC 20 (KLR)", Case Analysis (2024). Kitale SCC CC. No. E032 of 2024. Source: https://new.kenyalaw.org/akn/ke/judgment/scc/2024/20/eng@2024-10-28

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