Kenya Bureau of Standards (Kebs) has been directed to undertake a fresh due diligence on pre-qualified firms in a multi-billion shilling tender for inspection of goods before leaving the country of origin.
The Public Procurement Administrative Review Board found that Kebs was unfair to World Standardisation Certification Testing Group (Shenzhen) Co. Ltd when it disqualified the Chinese firm without giving it a hearing.
The company, which won Pre-export Verification of Conformity for inspection of motor vehicles, spare parts and other equipment for conformity to Kenyan standards on May 9, 2022, was disqualified for the 2025-2028 tender.
The firm said that despite meeting all eligibility and mandatory requirements, it was disqualified through a letter September 23, 2025, which alleged that the company had ‘on several occasions breached its contract with Kebs thereby compromising the safety of the population’.
But the procurement watchdog said the firm was not afforded an opportunity to be heard on some of the issues which the tender evaluation committee relied upon in reaching the decision to disqualify it.
‘The Evaluation Committee, in exercising an administrative function, was under an obligation to accord the Applicant a fair hearing before making a decision that adversely affected its interests,’ said the board.
The Chinese firm’s current contract was extended for six months, on May 7 to November 8, but it was served with the termination notice, two months to the end of the contract. The firm then rushed to court and obtained orders, blocking Kebs from terminating the deal.
In the decision on October 27, the board directed Kebs to re-convene the evaluation committee and undertake a fresh due diligence exercise on the firm, ‘in strict compliance with the provisions of the Tender Document, the Act and the Regulations’.
Further, the board directed the procurement process to be concluded within 30 days from the date of the decision.
Kebs invited the bids early this year and 19 firms, including the Chinese firm, expressed interest. After the preliminary evaluation, nine tenders were found to be non-responsive and were disqualified.
The remaining 10 satisfied all the mandatory requirements and were accordingly declared responsive and subsequently admitted to the technical evaluation stage for further assessment. All the firms were recommended for pre-qualification, subject to the outcome of a due diligence exercise.
The board was informed that the head of procurement at Kebs reviewed the entire procurement process, including the evaluation of tenders, and concurred with the evaluation committee’s recommendation not to prequalify the Chinese company.
The firm said it would be exposed to financial loss and reputational harm, having legitimately expected to be pre-qualified after meeting all technical, eligibility, and financial requirements.