KPC to overhaul buying processes

The Kenya Pipeline Company (KPC) is overhauling its procurement processes as it fights to save face amid numerous corruption allegations.

In a statement yesterday, the company said it had started a review of the processes used to acquire different items, including capital-intensive pipeline and oil storage equipment as well as tenders whose value runs into billions of shillings.

“We are undertaking a thorough review of our procurement processes, in full knowledge that the bulk of corruption allegations in KPC involve procurement. The exercise is already underway,” said Acting Managing Director Hudson Andambi.

“KPC has set in motion actions designed initially to stop any malpractices and in the longer term embed robust controls and processes to ensure we do not have repeat incidents.”

SEE ALSO :Deadlock after oil spill

The State firm has for a long time fought graft allegations and last year, senior managers were arrested and charged with misappropriation of public funds and abuse of office.

Most of the high-profile cases relate to awarding of multi-billion-shilling tenders selectively, sometimes at exorbitant costs.

KPC is battling claims of irregularly awarding a contract to Amaco Insurance to provide cover for some of its assets. This is despite having competitively selected CIC Insurance to provide the same services.

The contract is now split between CIC (70 per cent) and Amaco (30 per cent) and was awarded despite concerns raised by KPC’s insurance broker.

Mr Andambi said KPC was “closing insurance cover lapses that we identified earlier this year. These gaps were closed on Saturday February 2.”

SEE ALSO :Shame of KPC's Sh50b brand new leaking pipeline

Register to advertise your products & services on our classifieds website and enjoy one month subscription free of charge and 3 free ads on the Standard newspaper.

KPCHudson AndambiAmaco InsuranceCIC Insurance