By The Weekly Vision Team
Nairobi Governor Johnson Sakaja is facing significant challenges to his administration after the public procurement administrative board invalidated the multi-billion shilling health insurance tender that his administration had awarded to Jubilee Health Insurance. The health cover expired on July 28, 2024, and in a memo issued by then-acting County Secretary Patrick Analo, county staffs were instructed to seek medical services at the county’s health facilities, including Mama Lucy, Mbagathi, Mutuini, Punwani, and Mama Margaret Kenyatta.
The memo to these facilities stated: “Please ensure that you provide treatment to our patients and their families without charging them, effective July 29, 2024. This arrangement will be in place for the next 30 days while we finalize the procurement process for the new medical cover.”
Kenya Alliance Insurance, dissatisfied with the handling of the tender process, successfully appealed the decision, resulting in the cancellation of the tender and a directive for a new procurement process. Nairobi City County had initially awarded the tender (No. NCC/PSM/T/001/2024-2025) for comprehensive medical insurance, group life, and last-expense cover to Jubilee Insurance for Sh1,495,474,577 for one year.
The tender attracted six bidders: Jubilee Insurance, Kenya Alliance Insurance, Trident Insurance, First Assurance, AAR, and Madison Insurance. Although the evaluation committee initially awarded the tender to Jubilee Insurance, Kenya Alliance contested the decision, prompting a review.
On August 6, 2024, R.M. Omwanwa, Director of Supply Chain Management Services, reviewed the tender process and recommended awarding the contract to Jubilee Insurance, a recommendation that was approved by Chief Officer of Public Service Management, Janet Opiate.
However, on August 16, 2024, Kenya Alliance Insurance filed a request for review, arguing that the award should be nullified. The company claimed the evaluation committee had disqualified its tender based on the alleged failure to provide properly certified audited accounts, a requirement Kenya Alliance contested. The dispute centred on whether the audited accounts needed certification by a specific auditor or just any commissioner of audits.
The board ultimately sided with Kenya Alliance Insurance, cancelling the award to Jubilee Insurance. The order, dated September 6, 2024, reads in part: “The letter of notification of intention to enter into a contract for tender No. NCC/PSM/T/001/2024-2025 for comprehensive medical insurance and group life is hereby nullified and set aside.”
The Nairobi City County Evaluation Committee has been instructed to proceed with the procurement process and reach a resolution within 14 days.
