Steers wants Dubai firm’s airport restaurant deal stopped

Corporate News

Jomo Kenyatta International Airport in Nairobi where a Dubai firm plans to set up a restaurant. PHOTO | FILE 

By Sandra Chao-Blasto

In Summary

• KAA told the court that the contract was yet to be signed and that they had no objection to the stay orders being sought by Hoggers. KAA’s tender for development and management of an international brand fast food outlet had initially been awarded to the Steers franchise.

International fast foods chain Steers is seeking to stop Kenya Airports Authority (KAA) from signing a contract with Dubai-based firm Suzan General to manage a restaurant at the Jomo Kenyatta International Airport.

In an application filed under a certificate of urgency by lawyer George Ng’ang’a Mbugua, Hoggers Limited which runs the Steers franchise in Kenya wants to stop the award of the tender to the Dubai firm by the Public Procurement Administrative Review Board (PPARB).

“Section 100 of the Public Procurement and Disposal Act requires judicial review proceedings challenging the review board’s decision be instituted within 14 days, which fall within the vacation of the court,” Mr Mbugua told the court.

Through lawyer Njoroge Wachira, Suzan General have opposed the application on the grounds that granting a stay of the board’s latest decision would be an abuse of the court process and would be contrary to public interest.

KAA told the court that the contract was yet to be signed and that they had no objection to the stay orders being sought by Hoggers. KAA’s tender for development and management of an international brand fast food outlet had initially been awarded to the Steers franchise.

After Hoggers was awarded the tender in April, Suzan General applied for a review, but the tribunal upheld the award. The Dubai firm then asked for a fresh review in June, but PPARB declined to hear the matter, arguing that its decision was unlikely to be affected by the documents Suzan General had allegedly filed out of time.

The High Court ruling last month cancelled the tender award to Hoggers, faulting the procurement process. In his ruling Justice George Odunga ordered PPARB to commence a fresh review of the tendering process, stating that Suzan General reserved the right to be heard, whether or not its arguments were likely to affect the final decision of the board.

READ: Steers contract to run JKIA restaurant quashed

The review board’s December 18 decision awarded the tender to Suzan General nullifying the initial award to Steers and directed that the immediate signing of the contract.

In a previous review of the process PPARB ruled in favour of the food chain on May 6.

“By nullifying the award of tender to the applicant and awarding it to Suzan General without pointing out where KAA failed to comply with the decision of the board made on May 6 or contravened the tender document is unlawful,” he argued.

Other firms that had bid for the tender were Kuku Foods Kenya Limited and Yog Holdings. The application will be heard today.