KenGen Bosses Caught Pants Down In Fishy Tender Deal

The Evaluation Committee recommended that Thames Electricals Limited be awarded the subject tender at its quoted price of Kshs. 59,832,892.80 inclusive of VAT delivered to Kiambere Store. In a Professional Opinion dated 21st February 2023, the General Manager of Supply Chain, Mr Philip Yego, reviewed the manner in which the subject procurement process was undertaken including the evaluation of tenders and concurred with the recommendations of the Evaluation Committee with respect to the award of the subject tender

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The Kenya Electricity Generating Company’s top management was last week caught up in a tender war after the Public Procurement Administrative Review Board (PPARB) nullified a tender worth millions of shillings they had awarded to a company they are suspected to have interest in. In a ruling dated 17th April 2023, PPARB said there were anomalies which led to the fraudulent award of tender No. KGN-HYD-048-2022 for the Design, Manufacture, Factory Testing, Supply, Delivery, Installation, Testing and Commissioning of a Single-Core 1000Mm2 Copper XLPE 15 KV Power Cable for Kiambere Unit I Generator.

According to the Tender Opening Minutes signed by members of the Tender Opening Committee on 26th January 2023, a total of two tenderers submitted their tenders, Thames Electricals Limited and ARM Engineering Co. Ltd. The KeNGEN tender committee said the ARM Engineering Co. Ltd tender was found to have been non-responsive while the Thames Electricals Limited tender was determined responsive and preceded to Technical Evaluation.

The Evaluation Committee recommended that Thames Electricals Limited be awarded the subject tender at its quoted price of Kshs. 59,832,892.80 inclusive of VAT delivered to Kiambere Store. In a Professional Opinion dated 21st February 2023, the General Manager of Supply Chain, Mr Philip Yego, reviewed the manner in which the subject procurement process was undertaken including the evaluation of tenders and concurred with the recommendations of the Evaluation Committee with respect to the award of the subject tender. Thereafter, Mr Abraham Serem, the Acting Managing Director & CEO of the KeNGEN approved the Professional Opinion on 21st February 2023.

However, on 27th March 2023, ARM Engineering Co. Ltd filed a Request for Review dated 22nd March 2023 together with Supporting Affidavit sworn by Eng. Rodgers Mudegu Adai, its Managing Director on 22nd March 2023 through Joseph Atwoli Advocate seeking review of the tender process. After a rigorous process, the board ruled that the letter of notification of Award dated 13th March 2023 issued to Thames Electricals Limited should be nullified and set aside.

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