HomeTop StoriesSupreme court to Rule on KSh500B SGR contract Deal

    Supreme court to Rule on KSh500B SGR contract Deal

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    On Wednesday 9th, the Supreme Court will issue a ruling on whether or not the Sh500 billion SGR contract was constitutional.

    The Kenya Railways Corporation was found guilty of illegally courting China railways and bridges corp (CRBC) for the SGR project by the Court of Appeal.

    As the procuring authority, Kenya railway corparation was offended by the pronouncement that had broken the law by failing to adhere to the Article 227 (1) of the Constitution, section 6 (1) and 29 of public Procurement and Act of 2005.

    In June of 2020, a 3 judge panel at the appeals court ruled that the Standard Guage Railway (SGR) contract was invalid. The president of the supreme court Martha Koome was among the three bench panel.

    On Wednesday, Martha Koome, will preside over a panel of judges as they render a decision on a similar matter, over Ksh500 billion SGR deal.

    On the other side, Okiya Omtatah an activist, filed a lawsuit against Kenya Railway for violating procurement laws by awarding the SGR contracts without first complying with those laws.

    Omtatah claimed that only a select group of individuals were privy to information regarding the SGR agreement between Kenya and the China bank.

    It became clear from the paperwork that the contract granted broad authority to the Chinese lenders and mandated that any disputes be settled through arbitration in China.

    Some Authorities in Kenya, including former President Uhuru, hid the contract from the public eye despite court orders because they were legally obligated to keep its contents secret as agreed by the Kenya and Chinese government.

    The courts ordered that the state must release information about the SGR contract agreement deal to the public.

    A counterargument was made by Joseph Njoroge principal secretary for transport , claiming that the nondisclosure of contracts signed with Chinese for the SGR prevented him from discussing the matter to the public.

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