High Court orders Kenya Airports Authority to pay contractor Sh75 million over terminated airport project

The High Court has directed the Kenya Airports Authority (KAA) to pay a local contractor Sh75 million for preliminary work completed on the stalled Mandera-Wargadud Airport project.

Justice delivered the ruling, which upheld the decision of the State corporation to terminate the contract following unresolved fraud allegations within the procurement process.

The court determined that SEO and Sons Limited is entitled to compensation for services and equipment utilized by the state agency prior to the formal cancellation of the infrastructure agreement.

The infrastructure firm originally submitted its bid for the construction of the north-eastern airfield facility back in 2016.

A breakdown of the Sh75 million award reveals that the company will receive Sh15 million for engineering and topographic surveys.

Additionally, the state corporation must pay Sh7 million for initial mobilization logistics alongside Sh53.4 million for site clearing works completed at the location.

The Sh600 million airport development ran into logistical and legal hurdles shortly after its initial administrative launch.

The Public Procurement Administrative Review Board (PPARB) had previously intervened in the early procurement stages after rival bidders contested the initial joint-venture award.

The state agency later terminated the contract entirely, citing significant non-compliance and integrity issues embedded within the initial bidding activities.

The Ethics and Anti-Corruption Commission (EACC) also launched parallel investigations into the internal tender committee minutes and evaluation reports.

While the High Court agreed that the contract was legally terminated due to the underlying integrity lapses, the judge noted that the state cannot retain the benefit of completed works without compensating the service provider.

The ruling comes amid ongoing efforts by the national government to upgrade cross-border aviation infrastructure.

President Ruto recently instructed specialized infrastructure units to re-evaluate and revive key transport facilities in the region to support regional commerce.