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Firm sues KPA over Sh43m tender

By Joackim Bwana | January 24th 2020 at 08:30:00 GMT +0300

A Mombasa-based consultancy firm has sued the Kenya Ports Authority (KPA) over the cancellation of a Sh43 million tender for the construction of the new Kipevu Oil Terminal. Feradon Associates Ltd has accused KPA of wrongful termination of the contract after initially being declared the winner. The Ethics and Anti-Corruption Commission has also joined the suit as an interested party. 

Feradon's lawyer Meshack Odero said yesterday the firm followed the tendering process and was awarded the tender on March 15, last year. “Without any iota of right and justification, and after going mute for nearly two months, 53 days to be specific, KPA illegally and unilaterally canceled the aforesaid award via a later dated May 6, 2019,” said Odero.

He said the termination of the tender should have happened before notification of the award. KPA advertised the tender on January 22, last year, and four bidders, including Feradon, submitted their bids. Odero said none of the other bidders contested the tender award within the stipulated 14 days under the Public Procurement and Asset Disposal Act, 2015.

KPA Kipevu Oil Terminal Feradon Associates Ltd
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