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The Kenyan High Court has stopped Kenya Power from proceeding with a tender for insurance brokerage firms on the plea that it might lock out many local companies from the lucrative business. The petition was filed by Okiya Omtatah and the Court held that case should be heard on an urgent basis..
The tender was advertised in June but was cancelled and re-advertised with new requirements and some of the earlier conditions were omitted.
Kenya Power first advertised the tender for pre-qualification of insurance brokerage firms on June 8 ahead of its cancellation on July 1 without reasons. It was advertised afresh on July 20 with new requirements.
The petitioner wants the court to issue an order that tenders issued by the KP must have provision for 30 per cent affirmative action under the Access to Government Procurement Opportunities (AGPO) programme.
The fresh advertisement, according to the petitioner, increased professional indemnity cover from Sh200 million to Sh1 billion, which protects professionals from legal liability for any acts of negligence, errors or omissions, in the course of duty.In the first tender, Kenya Power had included “territorial limit within Kenya” in the expression of interest but it was removed in the second advertisement.
According to the petitioner, indemnity cover of minimum limit Sh1 billion is unreasonable and oppressive because even the regulator- Insurance Regulatory Authority itself requires a professional indemnity insurance policy with a minimum limit of Sh10 million.
