Procurement agency cancels Sh72m Kemsa cover tender


Kenya Medical Supplies Authority (KEMSA) Head Office Nairobi at Commercial Street, Industrial Area. FILE PHOTO | DIANA NGILA | NMG

The procurement watchdog has overturned a decision by the Kenya Medical Supplies Authority (Kemsa) to award a Sh72 million tender for the provision of medical insurance cover to First Assurance Company.

The Public Procurement Administrative Review Board (PPARB) ruled that a requirement at the preliminary examination should not have been applied because it was ambiguous.

The board directed Kemsa to admit Jubilee Health Insurance and other bidders at the technical evaluation stage, for fresh bids.

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“The letter of notification of the award of the tender for the provision of medical insurance cover for Kemsa staff dated November 15, 2022, issued for the first respondent and addressed to the interested party be and is hereby nullified and set aside,” the board said in a recent ruling.

Jubilee Health Insurance had argued that it was knocked out at the preliminary stage unfairly.

Kemsa invited bids for the provision of a two-year medical insurance cover for its staff in September 2022.

The tender attracted 10 bidders including GA Insurance Limited, Zamara Risk Insurance Brokers, CIC General Insurance Limited, AAR Insurance Kenya Limited and Madison General Insurance Limited.

Others were Liaison Group (Insurance Brokers) Limited, Heritage Insurance Company Limited, APA Insurance Limited, First Assurance Company Limited and Jubilee Health Insurance Limited.

Only four firms including First Assurance Company Limited’s tender were allowed to move to the technical evaluation stage.

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After technical and financial evaluations, the tender committee in November 2022 recommended that the contract be awarded to First Assurance Company Limited to the tune of Sh72 million inclusive of all taxes.

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