The High Court in Nairobi has issued temporary orders stopping the Kenya Tea Development Agency (KTDA) and its subsidiary, Chai Trading Company Limited, from executing or implementing a multi-million shilling security tender. The decision was made by Justice Moses Ado of the Commercial Division, pending the determination of a case challenging the tender award process.
The order followed an application filed by Anthony Manyara and Youth Advocacy Africa, who accused KTDA of irregularly awarding the tender to a preferred bidder. The petitioners, represented by Okoth Elly & Company Advocates, argued that the process violated principles of fairness, transparency, and good governance.
According to court documents, KTDA and Chai Trading had already initiated steps toward signing or partially executing the contract. The petitioners warned that if the tender execution proceeded, the case would be rendered meaningless.
“The defendants have already initiated steps towards execution of a contract with the said bidder and are in the process of signing, or may have already partially executed, the contract, actions which may occur at any moment, thereby extinguishing the plaintiffs’ rights and rendering this suit and application nugatory,” they stated.
The applicants, who are long-term service providers to KTDA, claimed a legitimate commercial interest in ensuring that the procurement process is conducted lawfully. They argued that failing to halt the tender could result in irreparable harm, including permanent loss of business opportunity, reputational damage, and loss of client confidence.
While KTDA is a private entity not directly governed by the Public Procurement and Asset Disposal Act, the petitioners insisted that it remains bound by principles of fairness, transparency, and good corporate governance.
Justice Ado granted conservatory orders restraining KTDA and Chai Trading from signing or implementing the tender until the case is heard and determined.
