PS Kibicho breached CMC rights in motor vehicle lease tender


High Court has declared that CMC Motors Group Limited rights and legitimate expectation for the award of tender for leasing motor vehicles phase V was breached by the Interior Ministry Principal Secretary Karanja Kibicho.

Justice John Mativo also barred the PS from advertising or awarding tender contract for leasing of motor vehicles from local assemblers.

“An order of prohibition is issued to the interested party (Interior Principal Secretary and CMC Motors Group Limited) from advertising, inviting, accepting, evaluating bids and awarding contracts for the tender No. MICNG/SDI/004/2019-202 for leasing of motor vehicles from local assemblers”, Mativo ruled.

The court also suspended the retender , acceptance, evaluation or award of the said tender for 14 days.

CMC filed a petition against Kibicho and the Public Procurement Administrative Review board decision after the said tender which had been issued to them was revoked by the PS.

The company argues that the board’s decision dismissed the application for review and found that the Interior Ministry and CMC termination of tender No. MICNG/SDI/004/2019-202 was on the ground that the prices quoted were higher than the market prices was valid.

Through their lawyer Ogamba Amigos, the firm told the court that the PS has already re-advertised for the leasing of motor vehicles phase V through restricted tendering before the expiry of 14 days as provided by section 175 of the Public Procurement and Asset Disposal Act 2015.

CMC said said the board acted unreasonably in arriving at the decision as it did not direct itself properly in law and failed to call to its attention matters that it was bound to consider before and while making its determination.

“The respondent failed to call to its attention that leasing of motor vehicles phase II and leasing of motor vehicles phase v were mutually exclusive tenders and contracts with their own unique set of requirements”, added CMC.

The company stated that the board failed to take into consideration that there was no proper actuarial price matrix that took into account various parameters in motor vehicle leasing program such as motor vehicle specifications, insurance, driver training service centres, vehicle replacements and out of contract prices and the decision is unreasonable