Nairobi — The High Court has directed the government to compensate Parbat Siyani Construction Limited company over Sh39 million for unlawfully terminating a contract related to the setup of a prefabricated exhibition center at the Kenyatta International Convention Centre (KICC) grounds.

In his ruling, Justice Lawrence Mugambi granted a 28-day stay on the decision to allow the government time to review and file an appeal.

Justice Mugambi criticized the government for unnecessary delays and failure to formalize the award within the required timeframe. He ruled that such actions were unconstitutional.

"The respondents did not demonstrate transparency or accountability. Public institutions should not be permitted to misuse their authority," the judge stated.

The government's legal representatives urged the court to suspend the judgment's execution, arguing that the compensation would be drawn from public funds and that they intended to challenge the ruling.

Justice Mugambi also faulted the Kenya International Convention Centre (KICC) management for disregarding the contractor's letters, stating that their actions lacked transparency.

"In my assessment, the respondents deliberately delayed the process. Their conduct did not align with the constitutional principles governing procurement," the judge concluded.

Parbat Siyani Construction Limited secured the contract in 2019, but the government canceled it during its final phases.

The company subsequently took legal action, seeking Sh339 million in compensation for damages, claiming it had incurred substantial financial losses while preparing for the project.