Uasin Gishu county directed to pay contractor Ksh.1 billion for breach of contract

High Court in Eldoret has ordered the county government of Uasin Gishu to pay a contractor over Ksh. 1 billion due to breach of contract worth Ksh.35 million.

Presiding Judge Robert Wananda faulted the devolved unit for failing to reply to a suit filed by the company’s director regarding his dues for the work that he had done.

According to the Judge, the county government was in breach of an agreement signed between Zedka Technical Limited Company that was legally awarded the Ksh.35 million tender for the construction of Moiben sub-county hospital.

The court’s verdict stems from a move by the regional government to unlawfully terminate a contract related to the construction of Moiben sub-county hospital in a tender that was awarded to Martin Chemonges Siwa through his company, Zedka Technical Limited.

The contractor who emerged as the successful bidder for the county funded hospital project was left in limbo after the county terminated his contract without paying him the agreed amount for the work he had already completed on the site.

Siwa, according to the court documents, was awarded the tender during the 2015/2016 financial year and he had completed 30 per cent of the construction work before his contract was terminated in what he termed as breach of pact.

He told the court during the hearing that he stopped when the county failed to pay the monthly certificate which had been certified and approved by the Resident engineer appointed by the Ministry of works.

Siwa further told the court that the county never even responded formally to his demand letters despite repeated reminders.

In its defence, the county government through the Chief Officer Health, Preventative and Promotion Service Dr. Paul Wangwe said that the contractor was served with default notice for delay and also for poor performance.

The Chief Officer brought to the attention of the court that as by February 14, 2016, the contractor has only done 7 per cent of construction work, thus way behind schedule. Wangwe argued that in his professional view, if any payment was to be made, it should be according to work done and completed and a certificate issued.

Wangwe stated that he was appointed Chief Officer on February 4, 2016 and that upon assuming office he went through the contract documents that the contractor was supposed to issue monthly quotations for work done which the Resident engineer would approve upon liaising with the county government.

The Chief Officer shocked the court when he said that he could not recall the date or the amount of money paid to the contractor whether in full or partial.

He said the work has not been completed to date adding that he was not even aware whether another contractor has been given the job or whether any work is ongoing.