Court backs KPLC’s termination of Sh410m poles contract
The Kenyan High Court ruled in favor of Kenya Power, upholding the termination of a multi-million shilling contract with Inter Tropical Timber Trading. The court found that the supplier failed to meet delivery deadlines and that the contract had expired.
Why it matters
The ruling sets a legal precedent for the strict enforcement of contractual timelines and the invalidity of informal communications in reviving expired agreements.
The High Court has upheld Kenya Power's decision to terminate a Sh410.6 million electricity poles supply contract after finding the supplier repeatedly failed to meet delivery deadlines.
The court dismissed Inter Tropical Timber Trading's Sh284.9 million breach-of-contract claim, ruling that an expired commercial contract cannot be revived through later emails, negotiations or continued engagement between the parties.
"The email of May 4, 2016 therefore affords the Plaintiff (Inter Tropical Timber Trading Ltd) no legal foundation upon which to anchor its claim," the court said in a decision that strengthens strict enforcement of contractual deadlines.
The dispute stemmed from a June 2012 contract under which Inter Tropical was to supply 29,500 treated poles to Kenya Power for Sh410.6 million. The poles were initially to be delivered to the utility's stores in Ukunda, Malindi and Voi over an 18-month period ending in February 2014.
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