JUDGMENT OF THE COURT
On the 22nd July, 2002, the Government of Kenya (GOK) entered into a written agreement with First Mercantile Securities Corporation, hereinafter “the Respondent,” and the said agreement involved the sum of USD $811,787,000/-. The Postal Corporation of Kenya, (PCK) a statutory body created by the Postal Corporation Act, had wanted to purchase some telecommunication equipment from an American company known as Spacenet Inc. USA, but it appears that neither GOK nor PCK could immediately pay in lump-sum the $811,787,000/- required for the purchase of the requirement. The PCK had its own Board and under section 7 of the Postal Corporation Act, 1998, the Board has power to:-
“manage, control and administer the assets of the Corporation in such manner as best promotes the purposes for which the Corporation is established.”
Under section 3 (2) of that Act,
“The Corporation shall be a body corporate with perpetual succession and a common seal and shall, in its corporate name, …