Firm wants Sh2bn Kenya-Poland milk coolers tender suspended

A milk cooling plant. PHOTO | FILE

What you need to know:

  • The milk coolers are part of a partnership programme between the Ministry of Agriculture, Livestock and Fisheries and the government of Poland that is to see the purchase of modern dairy equipment and training of experts to fight distribution of contaminated milk.
  • The Sh2.2 billion milk coolers tender is largely being financed by the Polish government through a loan to Kenya.

Kenyan company Elsa Olaf Enterprises wants a Sh2.2 billion deal between the Agriculture ministry and a Polish firm suspended after the local firm was replaced as implementer of a milk cooling project.

Elsa Olaf says it was selected by the Polish firm, Faspol S.P.Z.O.O. Ulgliniana in December 2015 as a local partner and that it signed a contract that was to see it advanced $7.848 (Sh808 million) or 34.5 per cent of the total funds availed for the tender, to implement the project.

Elsa Olaf says Faspol has now engaged another local firm, Desbro Kenya, as its subcontractor, leaving it in limbo.

The milk coolers are part of a partnership programme between the Ministry of Agriculture, Livestock and Fisheries and the government of Poland that is to see the purchase of modern dairy equipment and training of experts to fight distribution of contaminated milk.

The Sh2.2 billion milk coolers tender is largely being financed by the Polish government through a loan to Kenya.

“Faspol S.P.Z.O.O. Ulgliniana went ahead and signed a joint venture agreement with Elsa Olaf Enterprises on March 24, 2016 for a period of five years. Elsa Olaf and Faspol S.P.Z.O.O. Ulgliniana signed a letter of intent on January 10, 2017 with Faspol S.P.Z.O.O. Ulgliniana subcontracting the services of Elsa Olaf,” Elsa Olaf says.

“Faspol S.P.Z.O.O. Ulgliniana has now subcontracted the services of Desbro Kenya Limited to implement the tender despite clear arrangements that implementation is to be done by the plaintiff,”Faspol is yet to respond to the suit.

Elsa Olaf now says Kenyan officials from the Agriculture ministry have already flown to Poland to inspect the 350 milk coolers to be purchased.

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