Utility firm Kenya Power has received the go-ahead from the High Court to purchase more than 700,000 meters with an estimated budget of Sh. 5.4 billion.
The company issued a tender to local manufacturers and assemblers to aid in the supply of these instruments. KPLC seeks to fix the connections of customers who had faulty meters.
This move is seen as a way to uplift the company’s earnings from rock bottom. However, when the tender was announced in November 2023, Kenya Power was hit with a court freeze.
Benedict Ndung’u, Managing Director at Niavana Agencies Limited, sued the utility firm. He argued that tender restricted citizen contractors from participating, which posed a problem for individuals or firms fully owned by Kenyans.
At the high court, Justice Jairus Ngaah ruled that Kenya Power was not at fault for restricting the tender to local manufacturers and assemblers.
He said it is untrue that citizen contractors were barred from participating, for if they qualified as assemblers or manufacturers registered in Kenya, they could bid willingly.
”I am not satisfied that a case has been made out, on the face of these documents, to persuade me to exercise my discretion in favour of the applicant and grant any of the orders of judicial review sought. Its application is hereby dismissed with costs,” Justice Ngaah ruled.
This means that Mr Ndung’u, having lost the case, will have to part with millions of shillings to pay for the legal fees Kenya Power and the Public Procurement Administrative Review Board spent in defence of the suit.
Kenya Power termed the MD as a serial complainant on matters related to tenders, describing him further as a vexatious litigant driven by the need to cause harassment, frustration and financial costs to owners of tenders.
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Mr Ndung’u had also sued Kenya Power on two other tenders. He stated that the electricity provider had curtailed competition and fairness by prescribing non-existent preference and reservation schemes.
The High Court was informed that Kenya Power had received more than 10 bids to participate, however only 8 submitted their bids by the closing date on December 1st, 2023. Mr Ndung’u’s Niavana Agencies was not among the bidders.