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The High Court has suspended the execution of the Sh22 Billion Kenya Power tender
29/05/2023 21:49 in Business News

Kenya Power has been prohibited from moving on with a Ksh. 22 billion tender for the supply of meters, awaiting the outcome of a petition contesting how the tender was awarded.


The judge stated, "The leave so granted do operate as a stay of implementation of any decision arising from the notice of intention to award dated May 2, 2023 including but not limited to actual tender award, signing of procurement contract, execution and/or performance of procurement contract...


Additionally, Justice John Chigiti declared the situation urgent and ordered Kenya Power not to sign any contracts with the successful bidders.


Benedict Kabugi Ndung'u filed a judicial petition to contest the bid.


Kabugi claims that through six addenda, the eligibility requirements for the tender were weakened to include local meter assemblers rather than manufacturers, as had been first promoted. This affected the essence of the original tender document, according to Kabugi.


Only local producers were allowed to supply the meters under the February tender. Notifications were sent to four local businesses: Magnate Ventures Ltd., Smart Meter Technology Ltd., Yocan Group Ltd., and Inhemeter Africa Company Ltd.


However, Mr. Kabugi claims that several procedural and substantive errors, including violations of several provisions of the Public Procurement and Asset Disposition Act, tainted the whole process up to the award.


He claims that in order to eliminate the necessity for competitive bidding, mandatory provisions on eligibility and tender conditions were significantly and irregularly changed.


The judge ordered that the subject be discussed for directions on June 28.

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