The Chinese Embassy in Kenya, on Wednesday, July 1, issued a statement on the Court of Appeal ruling which declared the Ksh500 billion Standard Gauge Railway illegal.
On Friday, June 19, a three-judge bench comprising of Justices Martha Koome (presiding), Gatembu Kairu and Jamila Mohammed ruled that Kenya Railways failed to comply with procurement laws while issuing the contract to the China Roads Bridge Corporation (CRBC).
"We have noticed the report that Kenya's appeals court has ruled that Kenya Railway Authority and other government departments violated the public procurement law in respect of the SGR project. We believe that Kenya will properly handle this case," a statement sent to Global Times, China reads.
The Embassy further stated that the project was crucial to Kenya's economic and social development as it connected East Africa and also offered job opportunities.
SGR replaced the meter gauge railways constructed during British colonial rule and CRBC completed phase one of SGR from Mombasa to Nairobi that cost Ksh327 billion.
Phase two to Naivasha cost Ksh150 billion. The final phase from Naivasha to Malaba is projected to cost Ksh380 billion.
In the case filed by activist Okiyah Omtatah, the appellate judges also ruled that Kenya Railways Corporation (KRC), issued CBRC the contract before Kenya and China’s Exim bank sealed a financing deal.
Omtatah faulted the state for single sourcing for the project. He also argued that Parliament was not involved in approval as well as zero public participation in the project.
"We set aside that part of the judgment of the High Court holding that the procurement of the SGR was exempt from the provisions of the Public Procurement and Disposal Act, 2005 by reason of Section 6(1) thereof. We substitute therefore an order declaring that Kenya Railways Corporation, as the procuring entity, failed to comply with, and violated provisions of Article 227 (1) of the Constitution and Sections 6 (1) and 29, of the Public Procurement and Disposal Act, 59 2005 in the procurement of the SGR project," the ruling read in part.
