The Public Procurement Authority has asked Kenya Power to provide more details on a complaint raised against them by a businessman in a Sh5.4 billion tender for the supply of meters.
The tender was advertised in February. Initially, it was restricted to local manufacturers, only for Kenya Power to issue a series of six addenda, opening up the tender to include local assemblers.
Benedict Ndungu said the tender’s eligibility criteria were opened up to include local assemblers of meters and not manufacturers.
This, he said, changed the original tender document and the eligibility criteria.
Some 18 bidders showed interest but only four were awarded the tender.
Kenya Power, on the other hand, said power is not being utilised because of the lack of meters.
There is a backlog of about 500,000 meters for new connections and replacements.
But in a letter to Kenya Power, the procurement watchdog said Kenya Power did not submit to them copies of the six additions they issued and neither were they posted on the Public-Private Partnership portal.
The complaint allegations are based on the six addenda issued by Kenya Power's procuring entity.
In that regard, Kenya Power has been directed to avail the complete set of the respective addenda by uploading them on the PPP.
The authority also said Kenya Power did not confirm whether the additional quantities and costs were incorporated in the procurement plan and duly approved by the board as required by the Act and attendant regulations.
Kenya Power is required to make further responses to the observations made and inform the authority of the status of the subject procurement and how they are going to address the issues noted.
The submission was to reach the authority no later than July 21, but Kenya Power is yet to respond.
“As much as Kenya Power gave justification for the changes, the company did not confirm whether additional quantities and costs were incorporated in the procurement plan and have it duly approved by the board as required by the Act and regulations,” the authority said.
Ndungu said the four companies that were awarded the tender are not manufacturers of meters but tender entrepreneurs or assemblers of meters owned by politically well-connected Kenyans.
When the authority reviewed the Public Procurement Information Portal (PPIP), it said it “noted that your procuring entity did not place or upload the tender notice and tender document on the PPIP as required.
"You are directed to comply with the provisions of the procurement law and inform the authority the actions taken,” it said.