The Kenya Power and Lighting Company (KPLC) deals in the transmission, distribution, and retailing of electricity across the country.

The parastatal frequently releases tenders for various projects, ranging from infrastructure development to service provisions. Tendering is one of the legal ways government agencies use to procure goods and services. It is a system that enables citizens to do business with the government.

Access to Government Procurement Opportunities (AGPO) guidelines stipulate that within every financial year, Kenya Power is mandated by law to award up to 30% of tenders to Youths, women, and persons with disabilities.

The highest number of tenders awarded under the AGPO program were in the fiscal year ending June 30, 2024, where youth, women, and persons with disabilities bagged tenders worth sh 4.15 billion.

To be eligible for Kenya Power tenders, a tenderer must meet several criteria that are usually outlined in the tender documents.

Kenya Power’s procurement department will then evaluate each tender based on whether it meets each requirement and award a score, and the applicant with the highest score may have a higher chance of getting the tender.

Kenya Power’s Tendering Process

Typically, all Kenya Power’s tenders are published on the company’s official website. They may also be published in newspapers or advertised in media outlets. Tender submissions are typically made online, on or before the submission date indicated on KPLC’s e-procurement portal.

Here are some of the guidelines that you should follow to win Kenya Power tenders:

1.     General eligibility requirements

Kenya Power may award tenders to residents of any country unless restrictions apply under international laws, United Nations resolutions, or Kenyan government prohibitions.

Tenderers can be private entities, state-owned enterprises, institutions, or a combination of such entities in the form of a joint venture (JV). However, in the case of a JV, all members must be jointly and severally liable for the execution of the entire contract. Additionally, JVs must not participate in more than one tender submission, except as subcontractors.

For state-owned enterprises, they can only participate if they are legally and financially autonomous, operate under commercial law, and are not under Kenya Power’s supervision.

As a tenderer, you may be disqualified if you have any conflict of interest, such as having direct or indirect control over another tenderer, being a subsidy from another tenderer, or having prior involvement in the preparation of the tender documents.

Employees of Kenya Power and their close family members (spouses, children, parents, siblings) or business associates cannot participate in the tendering process​.

It is also important to note that companies or individuals who have been barred from public procurement by the Public Procurement Regulatory Authority (PPRA) are ineligible​.

2.     Specific compliance requirements

Having met the general eligibility requirements, your next step will be to review the specific state requirements.

One of these requirements is that foreign tenderers must source at least 40% of their contract inputs (supplies, subcontractors, labor) from Kenyan entities, with documentary evidence​.

Also, Kenyan tenderers must submit a valid tax compliance certificate from the Kenya Revenue Authority (KRA), while foreign firms must provide equivalent tax documents from their respective countries​.

You will also be required to provide your business permit and registration documents, which include:

–          Company Registration Certificate

–          PIN Certificate

–          Certificate of Confirmation of Directors (CR12), dated within 12 months before the tender opening date​.

Finally, a company resolution or power of attorney must be provided to confirm authorization to sign the tender documents​.

3.     Financial and performance criteria

The next step before being awarded a Kenya Power tender will be to assess the financial performance of your company.

Depending on the tender, you may be asked to provide a tender security in the form of cash, a bank guarantee, or an insurance bond from an approved financial institution​.

Tenderers must demonstrate financial capability by providing:

–          Audited financial statements (within the last 18 months) certified by an authorized auditor.

–          Bank statements for at least six months before the tender date for newly registered companies​.

It is also important to note that tenderers with unresolved contract performance issues for more than two months may be disqualified​.

4.     Technical evaluation Criteria

The next step will be to assess the technical capacity of your company. Here, you will be required to provide a comprehensive and achievable work plan and methodology​ of how you will complete the job.

As evidence, you will be required to demonstrate at least one successfully completed contract of a similar nature in Kenya, the East African Community, or abroad​.

Additionally, you will be required to demonstrate ownership or access to required equipment, as specified in the tender​.

Finally, tenderers must provide proof of qualified staff, including professional membership certifications where applicable​.

5.     Evaluation and awarding criteria

Having assessed your eligibility criteria, Kenya Power will evaluate whether your tender is relevant to the job you are applying for,and then they will select the tender that quotes the lowest price.

However, Kenya Power may also verify your company’s financial capacity, past performance, and compliance with the 40% local content rule before awarding the contract​.

Additional Tips to Win Kenya Power Tenders

In 2024, Kenya Power stated that all tenders must meet the guidelines stipulated under the Public Procurement and Asset Disposal (PPAD) Act 2015.

The company advised applicants to use the response templates provided within tender documents when applying, without modifying the templates in any way. Other tips include:

1. Ensure you submit all the required documents and information e.g. KRA certificates, company statements, Certificate of Incorporation, etc.
2. Mention the price for each product and service you propose to offer, including the conditions under which the price may change.
3. Explain how your proposed offer will meet Kenya Power’s needs
4. Rather than merely stating why you are qualified for the job, explain how you meet the selection criteria
5. Ensure you seek the permission of referees before including them in the tender response.
6. Submit your tender document before the deadline, don’t wait until the last minute.

Common mistakes when applying for Kenya Power tenders

According to Kenya Power’s procurement department, the most common reason for disqualification is forgery and failing to meet the required guidelines.

Additionally, quoting unreasonable prices, mathematical errors, and careless omissions may also disqualify one from bagging the tender.

Conclusion

Following these guidelines may increase your chances of bagging Kenya Power tenders. However, while every effort has been made to ensure the accuracy of the details provided in this article, tendering processes, requirements, and guidelines may change over time.

Individuals and businesses need to conduct their due diligence and verify all tender-related information from the Kenya Power website, the Public Procurement Regulatory Authority (PPRA), and other relevant bodies.

Bizna Kenya is not responsible for any outcome related to the tendering process, including if an individual follows the guidelines provided here and does not win the tender.