A watchdog has placed the Nyeri County government under scrutiny over procurement irregularities, including the introduction of a bidder during the evaluation of a Sh211 million medical insurance tender for Members of the County Executive and staff.
The Public Procurement Administrative Review Board (PPARB) found that the county government’s tender team erred by altering bid requirements and contacting the bidders to “clarify” the security deposited by one of the companies.
PPARB said the county breached mandatory provisions during the opening and evaluation stages for the 2025-26 comprehensive medical insurance cover tender. It rendered the process unlawful and unsustainable, prompting the board to order fresh procurement.
“The respondents violated the law during the tender opening and evaluation, thereby rendering the entire exercise illegal,” the board said.
“The cumulative effect of these irregularities leads to the inescapable conclusion that the entire process was tainted with illegality and must be nullified.”
Consequently, the PPARB directed the Director-General of the Public Procurement Regulatory Authority to address any culpability concerning legal breaches in the nullified tender and ensure compliance with laws in the fresh process.
The dispute stemmed from a tender seeking an insurance broker to manage the cover.
Three companies – Utmost Insurance Brokers Ltd, Transnep Insurance Brokers Ltd and Goldfield Insurance Brokers – submitted bids. After evaluation, the devolved government awarded the contract to Utmost Insurance Brokers Limited as the lowest evaluated bidder at Sh211.5 million.
Goldfield Insurance Brokers, which had quoted Sh213.5 million, contested the award, arguing that the process was flawed. Transnep had quoted Sh219.7 million.
Central to the dispute was the issue of tender security. The documents required bidders to submit a mandatory bond of Sh6.9 million.
However, during the public tender opening, Utmost Ltd’s security was recorded as Sh3 million – a figure confirmed by the company’s representative and documented in the tender opening roll.
“The tender opening register constitutes the final and definitive record of the process,” the board ruled, adding that once tenders are opened, “no bidder or procuring entity may alter or substitute material information”.
Instead of disqualifying Utmost’s bid for non-compliance, the county government’s tender committee attempted to rectify the discrepancy after the opening.
The team revisited Utmost’s documents post-closure, claimed to have identified a Sh6.9 million bank guarantee and communicated the “clarification” to bidders via phone and SMS.
PPARB ruled that the conduct violated the Public Procurement and Asset Disposal Act, adding that informal communication constituted unauthorised disclosure of procurement information and an unlawful attempt to bypass legal clarification procedures.
“Clarification cannot be used to correct a substantive defect or render a non-responsive bid responsive,” the board stressed, saying post-opening alterations of mandatory requirements undermine transparency and breach procurement laws.
The board dismissed the argument that the discrepancy was a minor oversight, stressing that tender security is mandatory and non-compliance at the opening stage automatically disqualifies a bid.
The PPARB identified more irregularities, including the introduction of a bidder named “Amana” at the technical evaluation stage – a decision it said compromised transparency and integrity.
“The respondents proceeded with an evaluation that was marred by violations of the law. The entire tendering was tainted with illegality and cannot withstand legal scrutiny,” the board said.
It also rejected Utmost’s claim that Goldfield’s review application was filed late, ruling that the cause of action arose upon award notification on November 18, 2025. Goldfield filed its application on December 1, within the statutory 14-day window.
“The opening stage is the foundation upon which the entire procurement is built,” the board stated.
“Where that foundation is compromised by statutory breaches, the resultant process cannot stand.”
As a result, PPARB nullified the Sh211 million contract award and ordered the Nyeri county government to re-advertise the tender.
The board further directed the devolved government’s accounting officer to consult the PPRA Director-General to implement interim measures ensuring uninterrupted medical coverage during the procurement.
