Arusha. The High Court, Small Claims Division in Dar es Salaam, has ordered M/S Climate Consult (T) Limited to pay more than Sh146.6 million after failing to implement a contract to supply Information and Communication Technology (ICT) equipment to institutions under the Ministry of Education, Science and Technology.
According to the court, the company won a tender in 2020 to distribute ICT equipment, including computers and printers, to institutions under the ministry. The tender was valued at over Sh708.2 million.
The case, Civil Claims No. 32619/2024, was filed by the Secretary General of the Ministry of Education, Science and Technology and the Attorney General (AG) against the company.
The judgment was delivered on December 19, 2025, by Judge Awamu Mbagwa and a copy has been published on the court’s website.
Court findings
After hearing submissions from both parties, the judge noted that Sh141.6 million had been paid to the company by the ministry as advance payment for implementing the contract. An additional Sh5 million was awarded as compensation for failing to fulfil the agreement.
The court ordered the company to pay interest at a reduced rate of 7% from the date of judgment until full payment, and to cover all legal costs.
Background of the case
The dispute arose from alleged breach of contract signed on November 30, 2023, after the company failed to return the Sh141.6 million advance.
It was stated in court that in 2020, the company won a Sh708.2 million tender to supply ICT equipment under the Teacher Education Support Project (TESP). A contract was signed on April 20, 2020, and the company received an advance payment of Sh141.6 million to prepare and distribute the equipment.
Despite receiving the funds, the company failed to deliver the ICT equipment. The ministry granted several extensions, but the company did not fulfil its obligations. Negotiations through the AG’s office eventually led to a settlement agreement on November 30, 2023, in which the company agreed to return the funds within 75 days.
The company failed to honour the agreement, ignoring several reminder notices from the ministry, prompting the ministry to file the case in the High Court.
Defence and court reasoning
The company argued that it was forced to sign the settlement, a claim the court rejected, noting that no evidence was presented to support coercion.
Judge Mbagwa said that contracts signed voluntarily are binding and the court has no authority to alter agreed terms. The company’s failure to return the funds was therefore a clear breach of the agreement.
The court also cited Section 73 of the Contract Act, stating that a party that breaches a contract is liable to compensate the other party for losses caused.
