Sh52bn KenGen tender queried

KenGen Managing Director Albert Mugo. KenGen earned Sh24.9 million for managing the most expensive form of energy in the country during the year to June 30. PHOTO | GERALD ANDERSON | NATION MEDIA GROUP

What you need to know:

  • The management sent a regret letter to Rentco East Africa Limited, accusing the firm of providing fictitious audited accounts but still awarded it the tender barely a month later.
  • The National Assembly’s Public Investments Committee chaired by Mr Adan Keynan demanded to know why KenGen settled on the firm yet it had no experience in leasing a wellheads power generating unit and was not registered to offer engineering consultancy services.

The management of the Kenya Electricity Generating Company (KenGen) was on Tuesday put on the spot for allegedly awarding a Sh52 billion tender to an unqualified company.

The management sent a regret letter to Rentco East Africa Limited, accusing the firm of providing fictitious audited accounts but still awarded the company the tender barely a month later.

The National Assembly’s Public Investments Committee, chaired by Mr Adan Keynan (Eldas, ODM), demanded to know why KenGen settled on the firm yet it had no experience in leasing a wellheads power-generating unit and was not registered to offer engineering consultancy services.

“The company used fraudulent documents in the tender bid. Why would you give a contract worth such an amount to a firm accused of engaging in fraudulent activities?” Mr Keynan asked.

KenGen Chief Executive Officer Albert Mugo was at pains to explain why the firm was considered when the management had raised doubts about its ability to handle the project.

MPs Chris Wamalwa (Kiminini, Ford-Kenya) and Kimani Ichung'wah (Kikuyu, TNA) charged that this was a conspiracy to defraud taxpayers.

“If you are part of fraud and you are still in office or you are out, you must be surcharged. You have to ensure the safety of public funds. We need to invite investigators to deal with this matter,” said Mr Wamalwa.

The meeting was temporarily stopped for some 10 minutes when Mr Mugo asked for time to consult his staff. He also requested two weeks to prepare a comprehensive report for the committee.

Mr Cornelly Serem (Aldai, URP) sought to know whether there were plans to cancel the deal.

“If we are not careful, this country will go to the dogs. Every mega project has people with interests winning the tenders,” he said.