Kenya Power Demanded for Further Details on Sh5.4bn Meter Tender
The Public Procurement Authority has requested additional information from Kenya Power regarding a businessman’s complaint regarding a Sh5.4 billion tender for the supply of meters.
This year’s tender was advertised in February. Kenya Power issued a series of six addendums expanding the tender to include local assemblers. Initially, the bid was restricted to local manufacturers only.
In his complaint, Benedict Ndungu explained that the eligibility requirements for the tender were expanded to include local meter assemblers but not manufacturers. According to him, this altered the original bid document and eligibility requirements.
There were roughly 18 interested parties, but only four were awarded the contract.
Kenya Power, on the other hand, stated that electricity is not being utilized due to a paucity of meters. Approximately 500,000 meters of new connections and replacements are pending.
In a letter to Kenya Power, the procurement watchdog noted that Kenya Power had not provided copies of the six additions it had issued, nor had they been posted on the Public-Private Partnership (PPP) website.
The allegations in the complaint are supported by the six addenda issued by Kenya Power’s procuring entity. In this regard, Kenya Power has been instructed to transmit the entirety of the respective addenda to the PPP.
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The Authority also stated that Kenya Power did not affirm whether the additional quantities and costs were included in the procurement plan, as required by the act and accompanying regulations.
Kenya Power is required to provide additional responses to the observations made and to update the authority on the status of the aforementioned procurement and how they intend to resolve the issues identified.
The submission was due to the Authority by July 21, however, Kenya Power has not yet responded.
“Although Kenya Power justified the changes, the company did not confirm whether additional quantities and costs were included in the procurement plan and obtain board approval as required by the Act and regulations,” the Authority said.
In his complaint, Ndungu stated that the four companies awarded the contract are not manufacturers of meters, but rather tender entrepreneurs or assemblers of meters owned by politically influential Kenyans.
When the Authority reviewed the Public Procurement Information Portal (PPIP), it noted that “your procuring entity did not place or upload the tender notice and tender document as required by section 96(1) to (3) of the Act as read with regulation 85(2) of the regulations and the PPRA circular.”
“You are directed to comply with the above-mentioned provisions of the procurement law and to report your actions to the Authority.”
Kenya Power Demanded for Further Details on Sh5.4bn Meter Tender