Business

Kenya Power win case against three local transformer suppliers

Monday, September 12th, 2022 01:45 | By
Kenya Power opens office to oversee e-mobility adoption
Kenya Power. PHOTO/Courtesy

Kenya Power has won big after the Court of Appeal dismissed a suit by three local companies over a Sh1.5 billion tender for supply of transformers.

The judgment by a three judge bench comprising of Justices David Musinga, Luka Kimaru and Ngenye Macharia threw out a request by the local manufacturers who wanted to compel Kenya Power and Lighting Company (KPLC) to change a policy in regard to the tender for supply of transformers in an attempt to avoid being locked out of the deal.

Case lacked merit

“The upshot of our finding is that the appeal lacks merit and is hereby dismissed,” the Judges ruled in the case filed by Pan African Transformers and Switch Gear Limited, Yocean Limited and Mahasharti Kenya limited.

They had approached the appellate court in a bid to overturn High court and Public Procurement Administrative Review Board (PPRB) decision that had also declined to compel KPCL to issue the tender to local manufactures only. The companies told the Appellate Court that the tender requirements are skewed, unfair, and meant to shut out local manufacturers from the multibillion-shilling deal in favour of foreign firms.

“The tender by the procuring entity breached the constitution, Public Procurement and Asset Disposal Act and the Government policies that promote local industries in preferences over International manufactures,” the firms said.

The tenders demanded firms with 10 years manufacturing experience, but local firms say they are in breach because they were set up in 2015. They argue they have been supplying the transformers for more than five years and Kenya Power has never complained of failures.

 “This the sudden change in policy to incorporate foreign tenderers without stakeholder engagement is unwarranted and unreasonable,” court documents stated.

Kenya Power has been seeking to increase the supply of transformer equipment to match increased connectivity, especially in rural areas.

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