The Public Procurement Administrative Review Board (PPARB) has nullified a €18,162,835.78 (approximately KES 2.49 billion) tender awarded by the Kenya Electricity Generating Company Plc (KenGen) for Tender No. KGN-BDD-016-2024. The tender, intended for consultancy services for the Olkaria VII Geothermal Power Project, was initially awarded to ELC Electroconsult S.p.A. but was challenged by Sintecnica Engineering S.R.L, in partnership with Steam S.R.L, prompting a formal review.
KenGen initiated the tender to secure funding from the European Investment Bank (EIB), adopting a single-stage tendering process. Three bidders submitted proposals by the deadline. According to the Tender Opening and Evaluation Reports, one bid was deemed non-responsive, leaving ELC Electroconsult S.p.A and Sintecnica Engineering S.R.L to advance to the Technical Proposal Evaluation stage. Both bidders met the minimum technical threshold of 70%, qualifying for financial evaluation.
The Financial Evaluation Report, dated 3 March 2025, recommended ELC Electroconsult S.p.A for the award based on their financial offer. This recommendation was endorsed by KenGen’s Supply Chain Manager – Procurement, Mr. Vincent Mamboleo, on 10 March 2025. A Notification of Intent to Award was issued on 21 March 2025. However, Sintecnica Engineering S.R.L and Steam S.R.L filed Request for Review No. 38 of 2025, raising procedural and substantive concerns about the tender process.
On 28 April 2025, the PPARB annulled the award notifications and ordered KenGen to reconvene the Tender Evaluation Committee for a fresh evaluation of the two qualifying bids. The board mandated strict adherence to the criteria outlined in the Tender Document, interpreted in accordance with the Public Procurement and Asset Disposal Act, 2015, and the Public Procurement and Disposal Regulations, 2020. Additionally, KenGen was directed to complete the procurement process, including the contract award, within 21 days of the ruling.
This decision highlights the critical need for transparency and compliance with procurement laws, especially in high-value projects involving public and donor funding.
