Court Nullifies Sh25M Stadium Tender in Landmark Fraud Ruling

The High Court has delivered a scathing judgment nullifying a Sh25 million tender for the renovation of Kenyatta Municipal Stadium in Trans Nzoia County, declaring the contracts “null and void ab initio” — as though they had never existed.

In a landmark decision delivered in Nairobi on Thursday, Justice Nixon Sifuna ruled that the contracts awarded to KOYI Building Contractors were irreparably tainted by “irregularities, illegalities and fraud,” ordering the contractor and former county officials to refund the entire Sh25,334,525.50 with interest.

“There was no advertising, no proper evaluation, and no record of deliberations by the tender committee,” Justice Sifuna observed in his ruling, highlighting the complete breakdown of procurement protocols.

The Culprits

The Ethics and Anti-Corruption Commission (EACC), which initiated the case, targeted three key individuals:

– Joseph Muindi Tevulo, former Head of Supply Chain Management at the county
– Robert Simiyu Wambulwa, a contractor trading as KOYI Building Contractors
– The late Benjamin Ruto Timitim, then County Architect (whose case was terminated due to his death)

The court ordered the surviving defendants to jointly and severally refund the entire amount to the government, with interest at commercial rates from the date the suit was filed until payment in full.

“Textbook Case of Bid-Rigging”

Court records revealed a “deeply flawed and fraudulent” tendering process that violated multiple procurement laws. Particularly damning was Wambulwa’s submission of multiple bids under different business names — KOYI Building Contractors and Siberrais Building Contractors Limited — which the EACC labeled a “textbook case of bid-rigging.”

The contracts in question, dated September 16, 2013 and April 22, 2014, were ostensibly for stadium renovation and constructing spectator sheds. However, the court found they were never properly sanctioned by the county’s accounting officer — a fundamental legal requirement.

Budget Violation

Despite only Sh10 million being approved in the county’s supplementary budget for the 2013/2014 fiscal year, Wambulwa was awarded a contract worth Sh15.8 million — a flagrant breach of public finance regulations that the EACC argued constituted “engaging in a project without prior planning,” violating Section 45(2)(c) of the Anti-corruption and Economics Crimes Act.

Harsh Rebuke for Public Official

Justice Sifuna reserved particular criticism for Tevulo, the most senior public official among the defendants. The judge directed Attorney-General Dorcas Oduor to consider appropriate sanctions against him, which may include barring him from holding any procurement portfolio in the public sector.

Despite entering appearances and filing defenses, the defendants failed to participate in the hearings — a move the court interpreted as “wilful negligence and a lack of wisdom,” especially for a public servant like Tevulo.

Protecting Public Resources

The ruling sends a powerful message that corrupt dealings in public procurement will not be tolerated and underscores the judiciary’s commitment to protecting public resources from what Justice Sifuna characterized as “looters operating under the guise of development.”

This case marks a significant milestone in Kenya’s fight against corruption within county governments, established following the implementation of the 2010 Constitution’s devolved governance structure.