Gas cylinders (photo / Dhahabu.co.ke)
The National Oil Cooperation of Kenya (NOCK) has been stopped by the high Court from awarding a tender for online payment of subsidized cooking gas for the poor following a tender raw.
The 6kg gas which was set to retail at sh 2000 down from the current sh5000.
The tender was suspended on Monday by the high Court after a mobile tech company, Attain Enterprise Solutions, sued NOCK for terminating their contract and advertising for new tenders.
“That an injunction…is hereby granted restraining the defendant from cancelling the award granted to the plaintiff by the letter dated 10th July, 2017 pending the inter parties hearing,” Justice Joseph Onguto ordered.
NOCK had asked the court to dismiss the case sighting there was no legally binding agreement with the firm.T
The project was to be implementation by the ministry of Energy piloting in Machakos and Kajiado counties and was to see over 1million gas cylinders distributed in an effort to lower Kerosene use which is unhealthy.
Treasury has allocated sh 3.1 billion for the project.
Attain solutions argued it risked to loose sh690 million that it had incurred in the project and income it could generate after it embarked in generating the platform as per the contract.
Attain said that it had started discussing financials which NOCK had agreed to pay sh 30 million in 3 installments.
NOCK had argued that the contract with the firm was terminated on Dec 11 hence not binding.