The Public Procurement Administrative Review Board (PPARB) has cancelled a Ksh4 billion Kenya Power Last Mile Connectivity contract, terming it as unlawful.
The project funded by French Development Agency (Agence Française de Développement) for the construction of substations and power lines.
However, local contractors were left out on technicalities, forcing them to launch a complaint with PPARB accusing the sole power distributor of favouring moneyed foreign firms including Chinese contractors.
“The procurement entity’s bidding document for procurement of design, supply, installation, commissioning of transmission lines and substations issued on 20 August 2019 be and is hereby nullified and set aside. The procuring entity is hereby directed to retender within 45 days from the date of this decision,” ruled the Board.
The contractors through their umbrella body Energy Sector Contractors Association (ESCA) argued that the tender was “unrealistic turnover not feasible in the Kenyan economy for citizen contractors.”
The Board led by chairperson Faith Waigwa ruled that Kenya Power should have divided the tenders into smaller lots to allow the participation of local contractors.