The procurement watchdog has overturned a decision by the Kenya Wildlife Service (KWS) to cancel a Sh710.9 million medical insurance tender, ruling that the termination was unlawful, poorly explained, and procedurally flawed.
The Public Procurement Administrative Review Board (PPARB) stated that KWS acted outside the law when it canceled the tender for comprehensive medical cover for its staff and board members—a three-year contract ending in 2028.
Consequently, PPARB directed KWS to comply with the law and its earlier orders by properly completing the procurement within 60 days, adhering to the tender documents and procurement regulations.
The dispute stemmed from a tender advertised in April 2025, which attracted bids from eight major insurers, including Jubilee Health Insurance Limited and Britam General Insurance Company.
After evaluating the bids and conducting a re-evaluation exercise ordered by the Board in May 2025, Britam emerged as the lowest bidder at Sh710.9 million.
However, KWS Director- General Erustus Kanga declined to approve the award and instead terminated the tender, citing “material governance issues.”
Jubilee challenged the decision, arguing that KWS was using vague claims to avoid completing the procurement process.
The Board sided with Jubilee and outlined why the termination was unjustified. First, it ruled that KWS failed to clarify what constituted the alleged “material governance issues.”
“The mere recitation of the statutory language is not sufficient,” the Board said, emphasising that a public entity terminating a procurement process must provide specific and factual reasons that bidders can understand and contest.
Second, the Board examined a criminal investigation letter cited by KWS. The Directorate of Criminal Investigations confirmed a past business relationship between one bidder and a broker but found no wrongdoing in the tender and recommended no further police action.
The Board ruled that this did not justify cancellation, as there was no evidence of corruption, collusion, or fraud. Governance concerns, it added, must be specific and substantiated.
Furthermore, the Board found that KWS failed to follow mandatory procedures. The law requires an accounting officer to submit a written termination report to the procurement regulator within 14 days and to notify bidders with clear reasons.
However, the Board found no evidence of such a report and noted that termination letters sent to bidders lacked meaningful explanations.
Due to these failures, the Board ruled that the termination was not conducted “in accordance with the law” and could not be shielded from review. It also dismissed claims that it lacked authority to hear the case.
