The Kenya Power and four tenderers have been dealt a severe blow by the High Court after orders were issued barring execution of Sh22billion controversial tender for the supply of power meters pending hearing and determination of a suit filed by a private citizen Benedict Kabugi Ndung’u.
Milimani Judge John Chigiti certified the matter filed by businessman Benedict Kabugi Ndungu as urgent and directed the documents be served upon parties within 7 days.
On May 2, 2023, the utility firm, KPLC issued a notification to award the tender to four companies for the supply of meters (Local manufacturers assembler only) within 14 days of the notification.
The four are Inhemeter Africa Company Limited, Smart Meters Technology Limited, Yocean Group Limited and Magnate Ventures Limited. They have been listed as interested parties in the case before the court.
However, Kabugi, through a court order has successfully poured cold water to the lucrative deal challenging the process leading to the award of the tender.
“The leave so granted do operate as a stay of implementation of any decision arising from the notification of intention to award dated 2nd May 2023 including but not limited to actual tender award, signing of procurement contract, execution and/or performance of procurement contract…,” the judge said.
Kabugi in asking the court to intervene said the condition of the tender and the eligibility criteria were initially only for local manufacturing firms.
But the criteria according to the court documents were watered down to include local assemblers of meters and not manufacturers.
“KPLC subsequently issued a flurry of irregular addendums and specifically six addenda in total in an attempt to custom make the tender for a few preferred bidders and to deprive the procuring entity of the benefits of free and open competition.” The documents read in part.
Justice John Chigiti also certified the matter as urgent and directed Kenya Power not to sign the contracts with the winning bidders.
Kabugi argues that the tender’s eligibility criteria was watered down to include local assemblers of meters and not manufacturers as earlier advertised, through six addenda, a fact that changed the substance of the original tender document.
The tender was advertised in February for supply of meters by local manufacturers only. Four local companies were issued with notifications including Inhemeter Africa Company Ltd, Smart Meter Technology Ltd, Yocan Group Ltd and Magnate Ventures Ltd.
Kabugi says the entire process leading to the award were marred with procedural and substantive irregularities including breach of several sections of the Public Procurement and Asset Disposal Act.
He says mandatory terms on conditions for tender and eligibility were substantially and irregularly altered to defeat the need for competitive bidding.
The judge directed the matter to be mentioned on June 28, 2023 for directions.