businessdailyafrica.com·3 min read·medium

Watchdog faults CBK for ‘secret’ requirement in Sh1 billion tender

J
Joseph Wangui
Watchdog faults CBK for ‘secret’ requirement in Sh1 billion tender
AI Summary

The Public Procurement Administrative Review Board has invalidated a Sh1 billion tender award by the Central Bank of Kenya for its Kisumu branch. The board ruled that the bank unfairly disqualified bidders by enforcing an undisclosed, brand-specific requirement for cooling equipment.

Why it matters

This decision highlights the importance of transparency and fair competition in public procurement processes to prevent corruption and favoritism.

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The Central Bank of Kenya (CBK) has been faulted for using an undisclosed equipment requirement to disqualify bidders from a Sh1 billion Kisumu branch upgrade tender.

The Public Procurement Administrative Review Board (PPARB) found that the CBK listed a requirement for bidders to provide manufacturer authorisation matching existing computer room cooling systems by global firm, Stulz, although the brand was absent from the tender documents.

The board said the requirement was "extraneous, undisclosed and brand-specific”, and that CBK could not evaluate bidders against a criterion that was not contained in the tender documents.

The dispute concerned a tender advertised in March 2026 for enhancements and improvements to electrical power systems and associated data-centre works at the CBK Kisumu branch.

Five companies submitted bids, ranging from Sh985 million by Infinity East Africa Company Limited to Sh1.64 billion by Ultra Power Systems Ltd.

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