• Justice Jairus Ngaah, who issued temporary orders suspending the procurement last month, will make a ruling next Thursday.
• Local manufacturers argue that they were invited by KPLC to invest in the meter sector and set up multimillion-shilling factories that employ about 700 people.
Image: FILE
The High Court will next week rule on whether Kenya Power will proceed with or terminate a Sh2 billion tender for the supply of meters.
Justice Jairus Ngaah, who issued temporary orders suspending the procurement last month, will make a ruling next Friday.
Ngaah gave the temporary orders after local firms filed a petition following a decision by the Public Procurement Administrative Review Board to dismiss their complaint on a technicality.
The firms include Smart Meters Technology Ltd, Shenzhen Star Instrument Company Ltd, Magnate Ventures Ltd and Inhemeter Africa Company Ltd.
The firms claim Kenya Power imposed discriminatory conditions aimed at locking out local assemblers and manufacturers in favour of foreign companies. They say this is contrary to constitutional requirements of, among other things, non-discrimination and preference of locals.
The local manufacturers argue that they were invited by KPLC to invest in the meter sector and set up multimillion-shilling factories that employ about 700 people.
As a result of their businesses, the energy meter assemblers say they have contributed to the growth of the economy through payment of taxes.
They argue that a requirement for successful bidders to have a minimum of 15 years technical specifications experience in the manufacturing of energy meters is unlawful and biased. They say they have invested heavily and have been supplying KP since 2015.
They say KPLC locked them out of the tender by placing limits that favour foreigners.
“That the requirement to procure meters from OEM manufactures is meant to lock out local assemblers and manufacturers who have since 2015 been supplying Kenya Power with meters,” the firms argue.
The bidders protested that the actions by Kenya Power followed a recommendation by a task force appointed for the review of Power Purchasing Agreement. They say it overstepped its mandate by recommending that Kenya Power procure meters and transformers from OEM manufacturers.
The local firms claim Kenya Power has also gone against the Public Procurement and Assets Disposal Act, which requires manufactured articles, materials or supplies wholly mined and produced in Kenya be subject to preferential procurement.
The energy meter assemblers are accredited by Kebs and Kenya Power’s standards divisions. The meters are approved by Kebs and KPLC before being supplied to Kenya Power.
In response, Kenya Power, through its procurement officer Violet Simiyu, admitted to locking out local bidders on grounds that the firms manufacture substandard metres.
“That to secure the required standard of efficiency, reliability, security of supply and quality of service or its customers, it’s not sustainable for Kenya Power to engage in procurement of meters that are inferior, substandard and are prone to multiple failures,” she argues.
Former KP managing director Ben Chumo reiterated Kenya Power’s commitment to promote local manufacturers and assemblers in line with the government policy of “Buy Kenyan Build Kenya”.