The Public Procurement Regulatory Authority (PPRA) has issued a directive to Kenya Power regarding the award of a new contract for the supply of electricity meters to Smart Meters Technology Ltd, a company that previously failed to fulfill a contract three years ago.
In a letter addressed to Kenya Power’s Managing Director, Joseph Siror, the PPRA highlighted that Smart Meters Technology Ltd had a previous order to supply 91,000 smart meters by July 24, 2020, which it did not fulfill, as evidenced by a purchase order report.
This development has raised concerns as Smart Meters Technology Ltd is one of the four local companies that were recently awarded a substantial contract worth Ksh5.4 billion to provide 711,740 smart electricity meters. The legality of this decision is now under scrutiny due to the company’s failure to deliver on its previous contract with Kenya Power.
According to the Director-General of PPRA Patrick Wanjuki, the eligibility criteria for the tender, as outlined in the tender data sheet ITT 3.7 (2) and ITT 40 (20) (c), stipulated that bidders with more than 50 percent outstanding orders with Kenya Power were not qualified for the tender. Additionally, the award was supposed to consider timely delivery schedules and satisfactory performance, with at least 50 percent delivery on previous orders.
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The PPRA’s observations stem from a complaint lodged with the board by Benedict Kabugi, alleging irregularities in the tender process. The public procurement regulator is now seeking an explanation from the Kenya Power and Lighting Company (KPLC) as to how a company that failed to deliver on a previous contract in 2020 was included in the recent tender for smart meters.
In a letter directed to KPLC, the board highlights that Smart Meters Technology Ltd had an outstanding order for 91,000 meters due for delivery on July 24, 2020, with no evidence of delivery as per the purchase order report.
In light of these developments, KPLC has been given until October 4 to respond to the letter from PPRA. The regulator emphasizes the need for KPLC to address the financial implications in relation to the award criteria applied in the tender process.
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The four companies awarded the tender are Smart Meters Technology Ltd, Inhemeter Africa Company Ltd., Yocan Group Ltd., and Magnate Ventures Ltd. The situation underscores the importance of adherence to procurement regulations and transparency in contract awarded processes.
