- Kenya's government paid over KSh 220 billion to private companies in public procurement between June 2018 and June 2022
- Data from the Public Procurement Regulatory Authority (PPRA) highlighted ten private firms contracted for the four-year period
- Some of the companies, like North Street Cooling Tower Limited and Minet Kenya Insurance Brokers Limited, received most contracts
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TUKO.co.ke journalist Wycliffe Musalia brings over five years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.
Kenya government has issued 25,674 contracts worth over KSh 577.1 billion between June 2018 and June 2022 since the inception of the Public Procurement Information Portal (PPIP).
According to the Public Procurement Regulatory Authority (PPRA) 2021-2022 Report, 85.1% or 8,852 contracts, were issued on open tender.
This amounted to KSh 491.2 billion in value of the contracts issued under the open tendering method.
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"This demonstrates that open tendering; being the most competitive method is still the preferred method of procurement by public entities as desired in the Public Procurement and Asset Disposal Law," read the report in part.
However, some suppliers received the highest number of contracts—1,025 or 38% of the total contracts in the PPP, valued at KSh 220.9 billion.
These companies include:
1. Minet Kenya Insurance Brokers Limited
The company was awarded 18 contracts worth KSh 50.7 billion.
However, data available in the Public Procurement Risk Index (PPRI) showed the firm received a contract worth KSh 53.58 billion.
The Teachers Service Commission (TSC) issued the tender in August 2022 for the provision of comprehensive teachers’ medical insurance.
2. Frontier Engineering Limited
From the PPRA report, Frontier Engineering received one tender worth KSh 48.4 billion.
The Kenya National Highways Authority (KENHA) awarded the tender for the maintenance of Jct A8(Maili Tisa)-Kitale (B14) Road(All) in July 2021.
3. M and J Holdings Limited
M and J Holdings received one contract worth KSh 33.3 billion in January 2019.
The company was contracted by Machakos for the Kenya Urban Support Programme (Kusp).
4. China Jiangxi International Limited
The company received one government tender amounting to KSh 19.9 billion.
In 2022, the National Water Harvesting and Storage Authority contracted the company to construct the Soin-Koru Multipurpose Dam Water Project.
5. North Street Cooling Tower (P) Limited
North Street Cooling received tender awards for 982 contracts valued at KSh 16.1 billion.
One of the contracts was issued by the Kenya Electricity Generating Company in July 2022.
The company won a direct tender for the supply of Cooling Tower Nozzles and 0w37 Gearbox, worth KSh 48.4 million.
6. Pemunje Holdings Limited
Pemunje Limited received one contract worth KSh 16 billion.
Tana and Athi Rivers Development Authority contracted the company in September 2021 for the installation of a water supply pipeline and associated auxiliaries for the amount.
7. China State Construction Engineering Corp. (Kenya) Limited
China State Construction received two contracts worth KSh 11.9 billion.
The State Department of Housing, Urban Development and Public Works contracted the company to build proposed Affordable Housing Units - Park Road, Nairobi for KSh 4.9 billion.
Kenya National Highway Authority contracted the company in November 2019 for rehabilitation and improvement of Thika-Magumu Road at KSh 2.1 billion.
8. China Communication Construction Company
China Communication received one contract valued at KSh 9.5 billion.
KENHA contracted the company in November 2021 for the construction of the Garissa-Isiolo (A10) Road to All Weather Standard.
9. West Travel and Tours Ltd
The tour company received 17 contracts worth KSh 7.9 billion.
One of the contracts was issued by West Pokot County, valued at KSh 74.5 million, for a water project in August 2020.
10. Value Zone Limited
The company received one contract worth KSh 7 billion.
The Agriculture and Food Authority issued the tender in June 2020 for the provision of property management services for three years.
Facts about Public Procurement Reporting in Kenya
- The Public Procurement Regulatory Authority (PPRA) set up a portal for procuring entities to publish tenders and contracts.
- The contract details of multi-billion projects like the Standard Gauge Railway and the Nairobi Expressway are missing on this portal.
- Institute of Economic Affairs (IEA) programme officer, public finance management, Noah Wamalwa noted most procuring entities fail to report on contracting processes.
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