• Judge Makau’s order arose out of an application by Omtatah seeking to stop KPLC tender for saying it imposes eligibility requirements that lock out many local players.
• The tender documents were altered according to Omtatah to include a requirement of valid professional indemnity of Sh1 billion up from initial Sh200 million which he believes is oppressive.
The Kenya Power and Lighting Company (KPLC) tender for insurance brokers has been temporarily suspended.
This follows an order given by Judge James Makau on Friday after successful application by activist Okiya Omtatah.
Justice Makau further certified the case by Omtatah as urgent and directed that he serves the other parties with his suit papers in four days.
The case will come up for mention on September 22, 2021.
Judge Makau’s order arose out of an application by Omtatah seeking to stop KPLC tender for saying it imposes eligibility requirements that lock out many local players.
The tender documents were altered according to Omtatah to include a requirement of valid professional indemnity of Sh1 billion up from initial Sh200 million which he believes is oppressive.
He also noted that the tender does not have provision for affirmative action under the Access to Government Procurement Opportunities (AGPO).
AGPO is an affirmative action that seeks to empower women, youth and persons with a disability through public procurement business opportunities by giving these groups 30 per cent of all procurement initiatives without competition from established firms.
On June 8 KPLC advertised in the media inviting bids for tender for pre-qualification of insurance brokerage firms for the period of September 1 2021 to August 31 2023.
And on July 15 without giving any reasons the procuring entity wrote to all bidders notifying them that the procurement process had been terminated and tender cancelled.
Five days later another advert was placed for pre-qualification of insurance brokerage firms with a closing date of August 12.
According to the information available the submitted bids will be opened electronically promptly thereafter in the presence of the bidders or their representatives who choose to attend in KPLC auditorium.
Omtatah says due to infighting in KPLC’s top management and the board over the tender there was a delay in releasing the tender documents detailing the requirements.
Following scrutiny, Omtatah says he discovered that some of the bidder eligibility requirements in the second tender document had been changed in an unlawful and discriminatory manner.
The second tender document imposes an unacceptable bidder eligibility requirement of a valid professional indemnity cover of minimum of Sh1 billion.
While in the first tender document the valid professional indemnity cover was minimum of Sh200 million and territorial limit within Kenya.
Interestingly also the territorial limit within Kenya has been expunged in the second tender document underscoring the fact that locals have been locked out.
Omtatah now believes that the requirement of professional indemnity cover of Sh1 billion is unreasonable and oppressive because even the insurance regulatory authority itself requires a professional indemnity insurance policy with a minimum limit of Sh10 million.
The activist argues that the requirements he is complaining of are not only oppressive to many local brokers but also they discriminate directly in favor of large firms and are clearly designed to lock out local players who are relatively speaking small concerns.
“The decision to deny local insurance brokers a chance to earn a livelihood militates against their economic and social rights under article 43 of the constitution, and their rights consumers of KPLC’s procurement services to the protection of their economic interest,” Omtatah said.
Because only multi nationals are favored by the requirements, Omtatah believes that the same have been put in place for improper motives or corrupt practices of clearing local small scale insurance brokers from the market.
He believes that KPLC’s decision to operate outside the law is untenable and must be stopped by court.
Edited by T. Mutinda