A contentious road construction tender has landed in court, with Philemon Kandie, Director General of the Kenya Rural Roads Authority (KeRRA), at the center. The tender, previously scrutinized by Kenya Insights, has been marred by allegations of corruption and a lack of transparency.
According to reports verified by Mambo Mseto, Businessman Francis Kinyua Mwangi has now taken the matter to court seeking an injunction to prevent KeRRA from awarding a £1 billion tender to a Chinese firm, Shengli Construction. Mwangi alleges that the tendering process for upgrading several roads in Kisii County to bitumen standards was conducted in violation of the Public Procurement and Asset Disposal Act.
KeRRA DG Hon Philip Kandie
The roads in question include Metembe-Owalo-Rioma, Marani-Ng’enyi/Tin’ga Bobaracho Ragogo Kegogi Nyakoora Rioma Gesieka – Nyaore Marani Roads. The project was to be financed by the Government of Kenya through the Development Vote, with an allocation of £100 million in the financial year 2023-2024.
Through his lawyer, Simon Mburu, Mwangi informed the court that KeRRA invited bids from eligible construction companies for the completion of stalled road projects under Tender No. RWC 652, as part of the Roads 10,000 Program for the 2023/2024 financial year.
Mwangi perceives the intended re-evaluation of the bids, as communicated in KeRRA’s letter dated 8th April 2024, to be insincere and merely cosmetic. He alleges that the re-evaluation process is designed solely to address the observations made by the Public Procurement Review Board, rather than genuinely ensuring fairness and transparency in the procurement process.
KeRRA boss Hon Philip Kandie gestures during a past media presser
Furthermore, Mwangi alleges that KeRRA intends to award the tender to Shengli Engineering Construction (Group) Co., Limited despite another responsive bid by Guangxi Hydroelectric Company. He states that the difference in the tender amount exceeds £1 billion and awarding the tender to Shengli will result in the direct loss of taxpayer’s money.
In a letter dated 3rd April 2024, the Public Procurement Regulatory Authority addressed the Director General of KeRRA, highlighting a litany of constitutional and statutory violations regarding the notification of the tender award to Shengli Engineering. This led to the decision to re-evaluate the tender based on the observations raised by the Public Procurement Regulatory Authority (PPRA).
Mwangi is concerned that the re-evaluation exercise will not uphold the principles enshrined in the constitution and the Public Procurement and Assets Disposal Act. He alleges that KeRRA is determined to award the tender to Shengli despite the difference between the lowest responsive bid being over £1 billion, resulting in the loss of public funds due to corrupt practices.
