According to reports by Cyprian Is Nyakundi, a major dispute has erupted between the Communications Authority of Kenya (CA) and the Public Procurement Regulatory Authority (PPRA) over a Ksh 2.5 billion tender for a revenue assurance system. The situation has caused tension, with accusations of unfair practices and interference in the bidding process.
The PPRA has now ordered the CA to cancel the tender, pointing to serious flaws in how it was handled. The trouble started when several of the 18 companies bidding for the tender raised concerns. They claimed the CA was favoring certain bidders while sidelining others. One major issue was a requirement that bidders must have previously managed a project in Africa with a subscriber base of 140 million.
Many argued this condition was unrealistic and deliberately designed to exclude most competitors. The PPRA agreed, calling it unfair and restrictive.
On April 15, 2025, the PPRA sent a letter to the CA, demanding an immediate halt to the procurement process. The letter emphasized that the tender violated public procurement laws and needed a complete overhaul to ensure fairness and value for money.
The PPRA also criticized other requirements, such as the need for bidders to show audited accounts from 2021 to 2023 with a minimum turnover of Ksh 25 billion or USD 200 million over three years.
This, they said, locked out capable companies that could still deliver the system. Another problematic clause required bidders to provide evidence of handling three similar projects, each with a 140 million subscriber base, in the past five years.
The PPRA found this impractical, noting that such a high subscriber base was rare and that a letter of award didn’t prove successful project delivery.
They suggested asking for certificates of practical completion instead and lowering the subscriber base figure to encourage more competition. There were also allegations of cost inflation. Insiders claimed the tender’s value had mysteriously risen from Ksh 2.5 billion to Ksh 4 billion.
Some even accused CA chairperson Mary Mungai of instructing Director General David Mugonyi to ignore the PPRA’s objections, reportedly with support from a senior government official. This has only deepened the controversy.
The PPRA further pointed out that the tender didn’t comply with regulations requiring clarity on knowledge transfer if a foreign bidder wins. They also noted that the CA failed to properly upload the tender details on the Public Procurement Information Portal, as required.
This standoff has caused unrest at the CA, with some bidders threatening legal action if the process continues without changes. Despite the PPRA’s clear directive, there are reports that certain groups plan to push forward with the tender, ignoring the call for cancellation.
The situation remains tense, and many are watching to see how the CA will respond to the PPRA’s demands and whether this dispute will escalate further. For now, the future of the Ksh 2.5 billion tender hangs in the balance, with fairness and transparency being the concern of debate.
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