KenGen caught in corruption scandal as court cancels dubious tender

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The latest ruling by the High Court stopping KenGen from illegally awarding a Ksh 47 million cleaning contract has exposed deep-rooted corruption in the company’s procurement process.

The case, which involves Joymacx Enterprises, has highlighted how public tenders are manipulated to benefit specific firms, even when they do not meet the required standards.

The Public Procurement Administrative Review Board had earlier nullified the contract, citing gross irregularities, and now the High Court has confirmed that the award was unlawful.

Joymacx Enterprises was handed the cleaning contract despite failing mandatory, technical, and financial evaluations. Other bidders who met all qualifications and even quoted lower prices were unfairly disqualified, allowing Joymacx to secure the deal.

It has since emerged that this was not the first time the company benefited from KenGen’s questionable procurement practices.

Just months earlier, Joymacx had won another cleaning contract from KenGen worth over Ksh 120 million, raising concerns that the company enjoys special treatment.

Following complaints from competitors, PPARB reviewed the case and canceled the award on December 13, 2024. The board found that KenGen’s procurement team ignored clear evaluation criteria and awarded the tender to an unqualified firm.

Instead of accepting the decision, Joymacx challenged it in the High Court, hoping to have the contract reinstated. However, their case has now been dismissed, with the court affirming that the procurement process was illegal.

Justice J. Chigiti, in his ruling, upheld the PPARB’s findings, stating that KenGen’s tendering process was flawed and did not comply with the law.

The court established that the evaluation committee manipulated the selection process by introducing new criteria that were not in the tender documents.

This unfairly locked out deserving bidders while favoring a company that should have been disqualified. The judge emphasized that KenGen’s actions violated Article 227 of the Constitution, which demands transparency, fairness, and cost-effectiveness in public procurement.

As a result, the court ordered KenGen to redo the financial evaluation process within 30 days, ensuring that only qualified bidders are considered. This ruling has once again put a spotlight on the state-owned power generator’s procurement system, raising serious concerns about corruption and favoritism.

Industry insiders say that despite the clear evidence of malpractice, senior officials responsible for the flawed tendering process might escape punishment.

Some sources claim that instead of facing disciplinary action, certain officials involved in the scandal are being rewarded with promotions.

The ruling has now led to increased pressure on the Ethics and Anti-Corruption Commission to step in and investigate potential fraud at KenGen. Observers argue that unless firm action is taken, such fraudulent procurement deals will continue to drain public funds.

The case has also intensified calls for stricter oversight in state corporations, where corrupt officials often manipulate tender processes for personal gain. If no action is taken, Kenyans will continue to suffer from massive financial losses due to such fraudulent deals.

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