KTDA mandarins implicated in Sh10billion fertliser tender row awarded to Dubai based firm, Multi Commerce FZC limited

A Dubai based firm, M/S Multi Commerce FZC Limited which recently awarded Sh8.1billion tender for the supply of the controversial vegetable cooking oil and Indian White rice by the Kenya National Trading Corporation (KNTC) is now entangled in bitter contract for the supply of fertlieser consignment to the Kenya Tea Development Authority (KTDA), investigations by The Informer Media Group have established.

At KTDA, the board is being accused of micromanaging the procurement process in favour of Multi Commerce FZC Limited for the supply of 92,737 metric tonnes of NPK 26:5:5 fertiliser from Russia despite having failed in the repeated tendering process twice.

In the repeated controversial tendering process, SLDR International Limited emerged the lowest bidder.

However, KTDA board which even traveled to Russia for inspection process of the manufacturer controversially influenced the process in favour of the United Arab Emirates (UAE) based firm, M/S Multi Commerce FZC Limited.

And in a new twist of events, a Kericho High Court has since issued a court injuction barring KTDA and Multi Commerce FZC Limited or their agents from executing the contract until the matter is heard and determined following a petition filed by SLDR International Limited that successfully challenged the procurement process.

Effectively, thousands of tea farmers will be forced to wait longer and potentially miss out the short rain season beginning July when fertiliser should be applied.

The new development comes even as Deputy President Rigathi Gachagua is expected to convene a tea farmers meeting in Kericho early next month as a follow up to a similar meeting on tea reforms held in Meru last week.

At the centre of the questionable procurement is KTDA chairman David Muni Ichoho and the General Manager in charge of operations, who have been faulted for directing the KTDA management to issue the letter of award to Multi Commerce FZC Limited, the second lowest bidder, with instructions to enter into contract.

This is against the law because the board chairman has no mandate to get involved in procurement matters.

Justice Joseph Sergon issued the orders after SLDR International limited, a local company, challenged the tender that entails the supply of chemically compound fertilizers for the year 2023 in the petition before the court.

The petition drawn and filed by Bernard Mugisha of Nyaanga and Mugisha advocates on behalf of SLDR International limited, was on June 13, 2023 certified by Justice Sergon as urgent and issued conservatory orders stopping the procurement of the fertilizer issued pending the hearing and determination of the petition.

“Pending hearing and determination of this application, a conservatory order is hereby issued freezing any contract entered into between KTDA and M/S Multi Commerce FZC limited whether acting directly or indirectly or through third parties, agents or officers concerning the supply of the fertilizer.” Justice Sergon ordered.

According to documents filed in court, the petitioner, SLDR International limited claims that submitted the lowest evaluated financial bid of Sh5.1 billion for the first partial shipment of 46,369 metric tonnes of the fertiliser and whose manufacturer had production capacity of 2,700 metric tonnes per day with delivery timelines of between four to six weeks.

But KTDA, which has been listed in the case as the first respondent, overlooked its bid and proceeded to award the tender on June 8, 2023 to Multi Commerce FZC limited.

This is despite Multi Commerce FZC limited quoting Sh5.2 billion for the first shipment of 46,369 metric tonnes of the fertilizer with manufacturer authorization from JSC Minudobreniya that has a low production capacity of 1,800 metric tonnes per day with the longest delivery period of six weeks.

“The condition used to unfairly and unjustifiably disqualify the applicant despite submitting the lowest evaluated tender was not a condition in the tender document. It was introduced by the respondent’s chairman and General Manager to lock out the applicant’s bid,” the petitioner argues.

The price difference between the two bidders is USD602,790.50, equivalent to Sh83.8 million, enough to construct about nine boreholes complete with all fittings to deal with drought menace in the country’s arid and semi-arid lands.

It costs close to Sh10 million to construct a fully fitted borehole. “As such, there will be no value for money.”

The court order comes at a time President William Ruto has designated his deputy Gachagua to spearhead reforms in the tea sector among others, with the aim of incentivizing farmers and increasing productivity.