A dispute has emerged over Kenya Power’s insurance prequalification exercise after a procurement oversight body raised concerns that parts of the tender may have unfairly shut out eligible firms and weakened competition in the process.
The Public Procurement Administrative Review Board faulted Kenya Power for including conditions in its 2026–2027 insurance tender that it said were unclear, restrictive, and not in line with procurement rules. The case was brought forward by Benron Insurance Agency, which challenged the fairness of the requirements.
At the centre of the complaint were rules requiring bidders not to have unsettled claims older than 90 days and a condition demanding experience dealing with companies listed on the Nairobi Securities Exchange. The board said these requirements limited participation without sufficient justification.
The dispute also focused on a requirement that bidders submit audited financial statements for 2023 and 2024, which had to be certified within three months before the closing date. The board said the wording of the clause was confusing and could be interpreted in different ways.
It further noted that the tender did not clearly state who was supposed to certify the audited accounts or when the certification should be done, creating room for inconsistency during evaluation.
“This provision ought to be amended and rephrased so as to categorically and explicitly state who is to undertake the certification of the audited and when this is to be done, so as to leave no room for disparity of opinion during evaluation of submitted bids,” the board ruled.
Kenya Power’s requirement that already audited financial statements be recertified was also questioned, with the board saying it could force firms to incur unnecessary costs.
The watchdog also rejected a clause that would have disqualified brokers linked to insurance claims pending beyond 90 days, saying it was unfair and lacked a clear basis.
The board has now directed Kenya Power to revise the tender documents to ensure fairness, clarity, and equal opportunity for all bidders.