High Court slams breaks on Kengen Sh2.5billion carbon credit tender

The High Court has slammed breaks on raging Sh2.5billion tender war rocking the Kenya Electricity Generating Company (KenGen) after the court annulled the Public Procurement Administrative Review Board’s (PPARB) decision upholding the award in favour of Munja Trading Limited, in joint venture with Marwil Energy Holding AS.

Instead, High Court Judge Justice John Chigiti issued interim stay orders barring the joint venture of Munja Trading and Marwil Energy from implementing the tender and directed PPRAB to revisit the matter.

In the suit at the High court filed by Sintmond Group Limited, PPARB was listed as the first respondent while Kengen Managing Director Peter Njenga and Kengen are listed as second and third respondent respectively.

On the other hand, Munja Trading Limited, in joint venture with Marwil Energy Holding AS are listed as interested parties.

“The prayer that pending the hearing and determination of the substantive Originating Motion, that this Honorable Court be pleased to issue an interim order for stay, to stay the Execution and/or Implementation of the Decision of the 1st Respondent dated 27th October 2025 in Public Procurement Administrative Review Board Application No. 97 of 2025, Sintmond Group Limited vs The Accounting Officer Kenya Electricity Generating Company PLC, Kenya Electricity Generating Company PLC and JV of Munja Trading Limited & Marwil Energy Holding AS, in respect of Tender No. KGN- SALE-005-2025 for Sale of Certified Emissions Reductions (Re-Tender) is spent. 5. The application is hereby sent back to the 1st Respondent for re hearing which in an event must be done within 14 days of today’s date. No order as to cost shall be issued,” The ruling read in part.

According to CR12 registration records seen by us, among the registered directors Munja Trading Limited include; Geoffrey Nyamwaro Nyakundi holding 250 shares, Andreas Svoor (250 shares) and High North Quality AS (500 shares).

“An order of certiorari , to remove into the High Court and quash and/or set aside the decision of the Public Procurement Administrative Review Board (the 1st Respondent) dated 27th October 2025 in Public Procurement Administrative Review Board Application No. 97 of 2025, Sintmond Group Limited vs The Accounting Officer Kenya Electricity Generating Company PLC, Kenya Electricity Generating Company PLC and JV of Munja Trading Limited & Marwil Energy Holding AS, in respect of Tender No. KGN- SALE-005-2025 for Sale of Certified Emissions Reductions (ReTender) is hereby issued,” The order reads in part.

Further, the High Court issued a prohibition order barring Kengen MD and Kengen from implementing the PPARB decision dated October 27, 2025 that had given Kengen and its management permission to proceed with a Sh2.5billion tender to buy 6.38 million carbon credits.

Kengen had awarded the joint venture of Munja Trading and Marwil Energy the tender for the sale of 6,384,398 CERs.

Consequently, when Sintmond Group moved to the procurement watchdog, PPARB, to challenge the award, the case was dismissed forcing the petitioner to move to the High Court.

PPARB had dismissed an application for review filed by Sintmond Group Ltd, saying that given the magnitude of the subject tender and the substantial financial value involved, the firm bore the obligation to demonstrate its capacity to undertake a contract of such a scale.

Sintmond Group bid for sale of Certified Emissions Reductions (CERs) was disqualified after failing to provide independent evidence of successful performance in previous contracts of comparable value and complexity, despite being given an opportunity to do so.

“Accordingly, we find that under this ground, the respondents (KenGen) were justified in concluding that the Applicant (Sintmond Group ltd) lacked the requisite experience and capacity to handle the present tender,” PPARB had said in its now annulled ruling.

Sintmond Group had submitted the highest bidder offering $23,207,359 (about Sh2.99 billion).
The board said the omission contravened the requirements of Clause 14 of the bid data sheet, which obligated tenderers to demonstrate capacity and reliability through verifiable past performance.

KenGen advertised the bids in May 2025 asking bidders to demonstrate previous successful participation in emission reduction trading or transactions of CERs or Voluntary Emission Reductions (VERs), would form part of the evaluation criteria.

Three tenders were received- Munja Trading Limited in a Joint Venture with Marwil Energy Holding AS, Kyoto Network Limited and Sintmond Group Limited.

Upon conclusion of the evaluation stage, the tender committee found the joint venture responsive.

The evaluation committee determined that Munja Trading Limited in a Joint Venture with Marwil Energy Holding AS, had submitted the highest evaluated tender price, cumulatively amounting to $19,637,758 (2.53 billion), and was therefore ranked as the best evaluated bidder.

Sintmond Group challenged the decision arguing that the procuring entity improperly relied on extraneous and undisclosed due diligence criteria, to disqualify it from the tender.

Earlier, PPARB had directed KenGen to do bidding process afresh, citing irregularities in the earlier process.

Kengen did as directed and settled on the same company, forcing Sintmond Group to file another application for review.

The firm complained that it was condemned unheard and KenGen relied on matters that were never part of the tender process, in breach of the Fair Administrative Action Act.

And after hearing the case, the board still dismissed the application stating that despite being aware of the importance of demonstrating past experience, the firm still failed to furnish the evidence.

“The only reasonable inference to draw from this omission is that the Applicant did not possess credible proof of past performance to support its capability to execute the tender,” said the board.

“The Accounting Officer of Kenya Electricity Generating Company PLC be and is hereby directed to oversee the tender proceedings for Tender No. KGN-SALE-005-2025 for Sale of Certified Emissions Reductions (Re-Tender) to their lawful and logical conclusion,” the review board added.

The case now puts PPARB at the center of a vicious tender war that has split Kengen board right down the middle amid alleged grey areas cited in the tendering process.

“An order of prohibition, directed at the 2nd and 3rd Respondents, prohibiting them from implementing the Decision of the 1stRespondent dated 27th October 2025 in Public Procurement Administrative Review Board Application No. 85 of 2025, in Public Procurement Administrative Review Board Application No. 97 of 2025, Sintmond Group Limited vs The Accounting Officer Kenya Electricity Generating Company PLC, Kenya Electricity Generating Company PLC and JV of Munja Trading Limited & Marwil Energy Holding AS, in respect of Tender No. KGN- SALE-005-2025 for Sale of Certified Emissions Reductions (Re-Tender) is hereby issued,” the order by Justice Chigiti adds in part.