The Kenya Reinsurance Corporation (Kenya Re) has been put on the spot for attempting to dodge the award of a tender for valuing its multi-billion shilling assets, even after a company won the bid.
The insurer terminated the tender for the provision of consultancy services for asset valuation on January 6 despite its internal teams having recommended an award to a local firm, which triggered legal disputes.
Kenya Re said it cancelled the bids after an unidentified call to a member of the tender committee and a rowdy visit by five individuals to its office. The public procurement watchdog, however, rejected the insurer’s action.
Records filed with the Public Procurement Administrative Review Board (PPARB) show that a committee charged with driving the tender process had resolved to award it to Ebony Estates after several stages of bidding, and Kenya Re’s Supply Chain Manager Gladyce Musyoki approved the decision on November 10, 2025.
In a surprise turn of events, however, Kenya Re Managing Director Hillary Wachinga failed to approve the award before suddenly terminating it on allegations that staff had been threatened.
“The termination of this tender process is in line with the PPDA Act (Public Procurement and Disposal Act) Section 63(1)(e), which states that one of the reasons for terminating tender proceedings is that material governance issues have been detected. We, therefore, terminate the tender with immediate effect. The same will be advertised soon,” said Mr Wachinga.
Ebony Estates Director Kevin Muthama rushed before the PPARB on January 9, complaining that Kenya Re cancelled the tender without providing proper reasons or justifying the interference.
The board poked holes in Kenya Re’s explanations, noting that a statement by its receptionist who complained that five rowdy men visited the offices, insisting that they had won a tender, showed that they left “peacefully and happily”.
Kenya Re said that when the men visited its offices seeking to see the MD or an unnamed staff member, they were informed that the two were away.
“By this time, they were entering the lift talking too much, and I requested the security guard to call them back so that I could deliver the feedback. They all came back to the front office desk, and I delivered the feedback to him that the MD was out for a market visit. He appreciated me so much and apologised, and they left happily,” a statement by the receptionist said.
The PPARB ruled that a visit by individuals requesting to see a staff member or the MD is not unusual in the day-to-day operations of public offices and, in itself, does not constitute a threat.
“While the interaction with the five men may have initially been difficult due to the noise they created, a holistic assessment of the incident shows that they apologised and departed peacefully, a behaviour inconsistent with a situation that could be described as chaotic or sufficient to warrant termination of the subject tender,” it said.
It also found that Kenya Re did not produce any security report proving that the individuals posed a threat.
The board equally disregarded an argument by Kenya Re that a complaint by a tender committee member who received a call from an unfamiliar number demanding that the tender be awarded to the person who won could form enough grounds for termination.
It said the company ought to have provided evidence, such as call logs confirming that the call was, indeed, made rather than just minutes of a meeting where it was discussed.
“In view of the reasons explained above, the board concludes that the termination of the subject tender was not carried out in accordance with the law. Accordingly, the board finds and holds that the respondents failed to comply with the provisions of section 63 of the Act in terminating the subject tender, both procedurally and substantively,” the PPARB ruled.
The contract involves the valuation of Kenya Re assets.
Kenya Re commands an asset base valued at Sh66.8 billion by the end of 2024, largely composed of properties, government securities, and bank deposits.
In the property market, Kenya Re assets include the Re-Insurance Plaza in Nairobi, valued at Sh3.25 billion in 2024, Anniversary Towers valued at Sh3.3 billion, the Sh1 billion Re-Insurance Plaza in Kisumu, and the Sh1.9 billion Kenya-Re Towers.
The company also has parcels of land, including one valued at Sh989 million in Upper Hill, another plot of land valued at Sh813 million at the Jomo Kenyatta International Airport, and a parcel valued at Sh1.7 billion in Mbagathi.
The re-insurer has also invested Sh25.24 billion in government securities, deposited Sh14.32 billion with financial institutions, and invested Sh9.16 billion in ZEP-Re, a Pan-African re-insurance firm, based on its 2024 annual report.
PPARB proceeded to direct Kenya Re MD to proceed with the award of the tender to Ebony Estates, which had already been declared the winner following internal processes, before he terminated the tender.
“The Board notes that, prior to the unlawful termination, the tender proceedings had reached a stage where a Professional Opinion had been submitted to the 1st Respondent by the Manager, Supply Chain.
“In light of the foregoing, the Board finds that the proceedings should resume from this stage, as the evaluation process had already concluded,” it said.
