Kenya: Taita Taveta to Pay Tech Firm Sh2.5m for Breach of Contract

Taita Taveta County will have to pay a tech company Sh2 million for design work done in relation to the laying of ICT infrastructure.

Justice Ann Ong'injo ruled that Pwani Telecomms Ltd performed its part of the contract until it was hampered by the county government's failure to pay.

"It is also evident that the defendant breached the agreement by failing to make advance payment despite the plaintiff issuing a bank guarantee, thus frustrating the performance of the contract," Justice Ong'injo said.

Justice Ong'injo also ruled that the court could not award the company the Sh25 million it sought for a Local Service Order, because it said in court papers that it moved out of the project site before completing the work.

Pwani Telecomms Ltd told the court that after winning the tender, it accepted the offer on April 3 2017.

The work was to be done in two phases and the county would pay for it over two financial years.

The first phase would cost Sh25 million, with the contract period running for eight weeks.

Its drawings and designs were presented to the county government along with associated costs. The county reviewed the designs and sought revisions in accordance with its budget.

The company then moved to the site, procured materials and equipment and began installing the information and communications technology infrastructure.

On June 22, 2017, it billed the county government for Sh5.8 million under the terms of the contract but county officials failed to pay, and on August 30 2017, the company moved out of the site.

The company told the court that the county government had breached the contract by refusing to pay or ignoring demands for payment.