A Standard Gauge Railway Engine pulling some of the newly acquired 50 wagons for SGR Freight Services at SGR Gate around Port Reitz Station in Mombasa County on Monday 5th February 2024. [File, Standard]
Kenya Railways Corporation (KRC) has been ordered to re-evaluate the tender for the Nairobi Railway City Central Station and award it within 21 days.
The directive follows a successful challenge by China Civil Engineering Construction Corporation (CCECC), the lowest bidder, against the award of the Sh30 billion tender to rival firm China Road and Bridge Corporation (CRBC).
In its ruling, the Public Procurement Administrative Review Board (PPARB) ordered KRC to reconvene the tender evaluation committee and re-evaluate qualifying bids at the financial stage in line with the tender documents, the Constitution, the Public Procurement and Asset Disposal Act, and the 2020 regulations.
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“The 1st Respondent (KRC) is hereby ordered to re-convene the Tender Evaluation Committee in the subject tender and direct it to re-evaluate qualifying tenders at the Financial Evaluation stage in line with the provisions of the Tender Document, the Constitution, the Act and Regulations 2020 while taking into consideration our findings in this decision,” the Board said.
The project attracted three bidders, including CCECC, CRBC, and a consortium comprising China Overseas Engineering Group Company Limited and China Railway Group Limited (CRCEG-COVEC).
All three bidders passed the preliminary and technical evaluation stages. To win, the firms were required to attain a minimum pass mark of 80 at the technical evaluation part.
CCECC scored 80.8 percent, CRBC scored 87.1 percent, and the CRCEG–COVEC consortium scored 81.7 percent, and results communicated to the bidders on December 17, 2025.
CCECC submitted a Sh23 billion bid while CRBC placed a Sh30 billion bid while the consortium bid Sh32 billion.
The evaluation committee recommended the tender to be awarded to CRBC despite CCECC having placed a bid that was Sh7 billion less.
KRC’s General Manager for supply chain management, Benedict Kiama, reviewed the procurement process and the committee’s recommendation and issued a professional opinion approving the award on December 22, 2025, according to the PPARB ruling.
CCECC, represented by lawyer Conrad Maloba of Conrad Law Advocates, challenged the decision, with the hearing held on last Tuesday.
Maloba argued that CRBC failed to submit an electronic copy of its financial proposal as required under the tender documents, a concern he said was acknowledged by KRC after being raised by his client.
He told the board that CRBC did not meet mandatory requirements and that the submission of labelled flash disks may have exposed evaluators to financial information at an improper stage of the process.
Under the tender requirements, bidders were required to submit a bid bond of Sh500 million and provide two flash disks containing the technical and financial proposals.
However, Gideon Muturi, appearing on behalf of KRC, dismissed the claims, claiming Maloba’s submissions were factually incorrect and legally unsustainable.
Muturi argued that the tender documents did not impose strict obligations on how bid documents were to be sealed, packaged or placed, and that CRBC had complied by submitting both hard-copy and electronic documents.
He said the evaluation committee confirmed that all three bidders met the mandatory eligibility and responsiveness criteria at the preliminary stage.
Muturi further added that ambiguities in the tender documents regarding the placement of flash disks could not be lawfully construed against a bidder.
CRBC’s lawyer, Senior Counsel Kiragu Kimani, urged the board to base its decision on evidence rather than speculation, saying all bidders were present during the opening of tenders and signed minutes confirming that each had submitted two flash disks.
Kimani said CRBC had won the tender fairly and called for the application to be dismissed.
Jacob Oronga, representing the CRCEG-COVEC consortium was in support of Maloba’s client CCECC in calling for the review. He argued that CRBC failed to submit a flash disk containing its financial proposal, rendering its bid non-responsive and subject to disqualification.
He faulted KRC for treating what he described as a mandatory breach as a minor deviation.
In its decision, the PPARB found that the evaluation committee committed an illegality in the evaluation and award of the tender, contrary to the provisions of the tender documents.
The board also ruled that KRC’s notification letters to bidders failed to meet the required legal threshold.
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A Standard Gauge Railway Engine pulling some of the newly acquired 50 wagons for SGR Freight Services at SGR Gate around Port Reitz Station in Mombasa County on Monday 5th February 2024. [File, Standard]
Kenya Railways Corporation (KRC) has been ordered to re-evaluate the tender for the Nairobi Railway City Central Station and award it within 21 days.
The directive follows a successful challenge by China Civil Engineering Construction Corporation (CCECC), the lowest bidder, against the award of the Sh30 billion tender to rival firm China Road and Bridge Corporation (CRBC).
In its ruling, the Public Procurement Administrative Review Board (PPARB) ordered KRC to reconvene the tender evaluation committee and re-evaluate qualifying bids at the financial stage in line with the tender documents, the Constitution, the Public Procurement and Asset Disposal Act, and the 2020 regulations.
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“The 1st Respondent (KRC) is hereby ordered to re-convene the Tender Evaluation Committee in the subject tender and direct it to re-evaluate qualifying tenders at the Financial Evaluation stage in line with the provisions of the Tender Document, the Constitution, the Act and Regulations 2020 while taking into consideration our findings in this decision,” the Board said.
The project attracted three bidders, including CCECC, CRBC, and a consortium comprising China Overseas Engineering Group Company Limited and China Railway Group Limited (CRCEG-COVEC).
All three bidders passed the preliminary and technical evaluation stages. To win, the firms were required to attain a minimum pass mark of 80 at the technical evaluation part.
CCECC scored 80.8 percent, CRBC scored 87.1 percent, and the CRCEG–COVEC consortium scored 81.7 percent, and results communicated to the bidders on December 17, 2025.
CCECC submitted a Sh23 billion bid while CRBC placed a Sh30 billion bid while the consortium bid Sh32 billion.
The evaluation committee recommended the tender to be awarded to CRBC despite CCECC having placed a bid that was Sh7 billion less.
KRC’s General Manager for supply chain management, Benedict Kiama, reviewed the procurement process and the committee’s recommendation and issued a professional opinion approving the award on December 22, 2025, according to the PPARB ruling.
CCECC, represented by lawyer Conrad Maloba of Conrad Law Advocates, challenged the decision, with the hearing held on last Tuesday.
Maloba argued that CRBC failed to submit an electronic copy of its financial proposal as required under the tender documents, a concern he said was acknowledged by KRC after being raised by his client.
He told the board that CRBC did not meet mandatory requirements and that the submission of labelled flash disks may have exposed evaluators to financial information at an improper stage of the process.
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Under the tender requirements, bidders were required to submit a bid bond of Sh500 million and provide two flash disks containing the technical and financial proposals.
However, Gideon Muturi, appearing on behalf of KRC, dismissed the claims, claiming Maloba’s submissions were factually incorrect and legally unsustainable.
Muturi argued that the tender documents did not impose strict obligations on how bid documents were to be sealed, packaged or placed, and that CRBC had complied by submitting both hard-copy and electronic documents.
He said the evaluation committee confirmed that all three bidders met the mandatory eligibility and responsiveness criteria at the preliminary stage.
Muturi further added that ambiguities in the tender documents regarding the placement of flash disks could not be lawfully construed against a bidder.
CRBC’s lawyer, Senior Counsel Kiragu Kimani, urged the board to base its decision on evidence rather than speculation, saying all bidders were present during the opening of tenders and signed minutes confirming that each had submitted two flash disks.
Kimani said CRBC had won the tender fairly and called for the application to be dismissed.
Jacob Oronga, representing the CRCEG-COVEC consortium was in support of Maloba’s client CCECC in calling for the review. He argued that CRBC failed to submit a flash disk containing its financial proposal, rendering its bid non-responsive and subject to disqualification.
He faulted KRC for treating what he described as a mandatory breach as a minor deviation.
In its decision, the PPARB found that the evaluation committee committed an illegality in the evaluation and award of the tender, contrary to the provisions of the tender documents.
The board also ruled that KRC’s notification letters to bidders failed to meet the required legal threshold.
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By Fred Kagonye