Court orders government to pay supplier Sh1.2 billion for goods delivered to Health Ministry

The Court of Appeal has ordered the government to pay a private supplier Sh1.15 billion for goods delivered to the Ministry of Health, ruling that the State cannot rely on its own internal administrative failures to avoid a contractual obligation. A three-judge bench comprising Justices Patrick Mativo, Paul Lilan and Dr John Okello found that Equip Agencies Limited was entitled to payment for insecticides, anti-malarial equipment and other supplies delivered to government facilities in the 1990s. The court, however, overturned an award of compound interest that had been granted by the High Court, finding that the supplier had neither specifically pleaded nor proved its claim. The judges directed the Attorney General to pay Equip Agencies Sh1,157,846,150 being the principal amount for the invoiced goods, together with interest at the court rate from June 26, 1995 until payment is made in full.