Ksh5 Million Container Scandal Erupts At Kengen


Former Kengen’s managing director Albert Mugo could have engineered several scandalous/ ghost tenders to enrich himself before his retirement in August 2017, Kahawa Tungu‘s investigative desk can reveal.

This time, Kahawa Tungu focuses on a tender (no. KGN-GDD-010 -2016) that was awarded to an Industrial Area based company Containers World Kenya to supply the parastatal with 11 containerized Housing Units at a cost of Ksh5 million.

The tender announcement is no longer on their website

The company, in collusion with the then manager decided to make the units at the Industrial Area in a bid to swindle the company millions of money.

They however cheated that the containers were being made in India.

The tender document showing requirements

In order to make those around them believe, the Manager decided to send an Engineer, Eng. Tanui (A personal Friend of His) on a fully company sponsored 10 days trip to India in-order to inspect the containers as they were being made. This would cost the company a whooping  Ksh42,000 per day, accumulating over Ksh420,000. In this sum, other costs were not factored in, hence it is believed that the trip could have cost more.

Months later, only two containers were delivered but they were below living standards as per the ones set by the Tender Conditions. They used very old rejects containers; hence they were rejected by everyone.

Read: KENGEN Shareholders Angry Over Money Paid To Board Members

Despite being paid for in full, the other nine containers have never been delivered up to date in contravention of the Public Procurement Act that any state body should pay for items approved by the tendering committee and have met the set tender conditions.

Kahawa Tungu learns that the two units delivered have never been used as the lie idle at the Kengen grounds, accumulating rust.

Despite numerous attempts by junior employees to raise the issue to the current management, nothing has been done so far.

Our well-placed sources at the company also reveals that most of the tenders listed in the company’s website have issues and could have been used as a way to milk the company dry.

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Written by Francis Muli

Follow me on Twitter @francismuli_. Email

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