This archive report was first published on 19 June 2020.
On June 19, 2020, the Court of Appeal in Kenya delivered a judgment that declared the multi-billion-shilling Standard Gauge Railway contract illegal.
The ruling has significant implications for Kenya's government, as it prevents them from performing their obligations under the contract.
Lawyer Peter Kaluma described the judgment as 'earthmoving,' stating that it has immediate implications for the SGR contract and overall impact on procurement and disposal processes.
According to Kaluma, the judgment means that any actions taken in consequence of the breach are unconstitutional, null, and void.
He cited the law, stating, 'Breach of the constitution renders anything or any act done in consequence of the breach unconstitutional, null and void. Violation of the law or illegality vitiates and renders contracts incapable of performance by the contracting parties and unenforceable in law.'
Lawyer Harun Ndubi suggested that the Chinese government may challenge the decision at the international court if Kenya does not honor the issues agreed on in the contract.
Ndubi noted that the Chinese government was not a party to the dispute in both the High Court and Court Appeal, but participated in the case through its company, China Road and Bridge Corporation (CRBC).
