Kenyan courts say firms may lose payment for unlawful State contracts

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  Firms that supply goods or services to government agencies risk losing millions of shillings if they do not comply with procurement laws.

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  Courts have repeatedly ruled that public interest does not justify transactions that bypass mandatory procurement procedures.

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  They have warned that allowing firms to recover money from unlawful contracts would undermine the law.

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  The courts also say such payments could encourage irregular spending of public funds.

Who

Firms supplying goods or services to government agencies, and the courts ruling on unlawful contracts.

What

Firms may lose payment for work completed under contracts that bypassed mandatory procurement procedures.

When

Not stated.

Where

Kenya, in contracts with government agencies.

Why

The courts say allowing recovery of money from unlawful contracts would undermine procurement law and encourage irregular public spending.

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