Kenya Power cites quality in a two-billion-square-meter bid line with local firms - Business Daily

Kenya Power cites quality in a two-billion-square-meter bid line with local firms – Business Daily


Kenya Power cites quality in bidding row worth 2 billion square meters with local firms


Electric meters at Great Wall Gardens 2. Photo | Kaneri Wahito | NMG

Kenya Power has defended the move to prevent local assemblers from bidding for Sh2 billion worth of electricity meters, arguing that it has restricted purchases due to high failure rates of devices sold by local firms.

The energy utility company said it restricted the tender to reduce meter faults in single-phase and three-phase prepaid meters.

Kenya Power was responding to a case brought by local collectors who said the decision was discriminatory and against the company’s policy to promote the local industry.

“Furthermore, respondents find the justification for bringing in international suppliers and expanding specification standards is based on the high failure rate of meters provided by local meter pools as well as the internal respondent policy (KPLC) on sourcing for best value,” the company said in court documents.

The energy utility company added that the costs associated with meter failures, on average, over the past three years run into huge sums of money, by replacing faulty meters, a move the company says has also affected its image and lowered customer satisfaction levels.

Also read: Win for local suppliers as board stops Kenya Shen 2 billion bid for energy meter

Local manufacturers argued in a case brought at the Public Procurement Administrative Review Board that the conditions set by Kenya Power were to exclude local manufacturers and assemblers who had all been supplying the company with meters since 2015.

Their attorney, Titus Kosio, said the restrictions placed in bidding and favoring foreign manufacturers over domestic manufacturers and assemblers violate Article 10 of the Constitution on national values ​​and principles to promote domestic manufacturing.

“The members of the applicant are concerned that the defendant will quickly implement the work team report out of context and to achieve ulterior motives that were included in the contested tender whose net effect is to exclude the applicant’s members from participating in the bid,” he said in his affidavits.

However, Kenya Power said that first-tier firms, which are mostly foreign firms, are generally the largest or most technically capable firms in the supply chain.

The company’s attorney, Irene Wallala, said foreign companies have the skills and resources to provide essential components needed by OEMs, and have set up processes to manage suppliers at the next levels.

Also read: Kenya Power suspends 59 before bid audit

She said Kenya Power is committed to providing its customers with the highest attainable quality, for energy sustainability as well as making the most economically feasible decisions for the growth of its own business.

She urged the council to dismiss the case, noting that local compilers yearn for exceptions and unfounded sympathy.

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