The Public Procurement and Administrative Review Board has ordered Nairobi County to reopen a Sh1.4billion medical insurance tender after finding that Kenya Alliance Insurance Company was unfairly disqualified.
Following an application for review filed by Kenya Alliance, the board ordered that all bidders that were responsive at the technical evaluation stage be admitted for re-evaluation of their bid documents.
“The letter of Notification of Intention to enter into a contract with respect to Tender no NCC/PSM/T/001/2024-2025 for the provision of comprehensive medical insurance, group life and last expense cover for State and Public Service Officers for Nairobi City County issued addressed to the interested party be and is hereby nullified and set aside,” the board said.
The decision was issued on September 6. The board found that Kenya Alliance’s audited documents had been duly signed by its auditors approved by the Institute of Certified Public Accountants of Kenya (ICPAK) and had been properly certified by a Commissioner of Oaths.
“Considering the above, the Board is left with the inevitable conclusion that the applicant’s bid met on all fours the requirement stipulated under the tender document and ought to have been rendered responsive and progressed for technical evaluation,” the board said.
On July 8, Nairobi County advertised the tender that attracted bids from Kenya Alliance, Jubilee Health Insurance, First Assurance, AAR Insurance, Trident Insurance Company and Madison General Insurance.
Kenya Alliance said its bid was disqualified at the preliminary evaluation stage as its audited accounts for 2022 and 2023 had not been stamped and certified by the audit firm appointed to audit accounts.
At the end of the evaluation stage, Nairobi County awarded the lucrative tender to Jubilee Health for Sh1,495,474,577 for a period of one year.
Aggrieved by the decision, Kenya Alliance filed an application for review at the procurement board asking that the decision to award the tender to Jubilee Health be set aside.
Kenya Alliance told the board that the tender document required bidders to provide certified copies of tender documents and the audited accounts signed by an auditor approved by ICPAK.
The insurance firm argued that the only obligation placed on the auditor was to sign audited accounts and not to stamp or certify the audited accounts. Kenya Alliance said that they submitted audited accounts that were certified by an Advocate of the High Court of Kenya as a true copy of the original.
Nairobi County told the Board that the application for review was time barred and that Kenya Alliance should have approached the board 14 days after the county had sent feedback on the tender.
Jubilee Health, which had been enjoined as an interested party, told the board that Kenya Alliance’s bid document did not bear a stamp yet certification and stamping are supposed to go hand in hand.
The board said that Kenya Alliance filed a request for review within the 14 days stipulated time having applied for the review on August 16, 2024 stating that the letter of notification was received on August 7, 2024.
The procurement board also emphasised section 70 of the Public Procurement and Asset Disposal Act, which requires that a tendering company give sufficient information in the tender document to allow for the fair competition among the tenderers.
“The Board’s interpretation of a system that is fair is one that considers equal treatment of all tenders against criteria of evaluation known by all tenderers having been well laid out in the tender document issued by the procuring entity,” the board said.
It noted that the tender document required that a bidder submit certified copies of audited accounts signed by auditors approved by ICPAK and that the Commissioner of Oaths certify all copies.