The Kenya Ports Authority (KPA) has secured a reprieve in two procurement disputes after a tribunal dismissed applications seeking to overturn contracts worth Sh1.3 billion.
The Public Procurement Administrative Review Board (PPARB) ruled that Finland-based Kalmar Finland Oy was lawfully disqualified in both tenders for failing to meet key requirements, allowing KPA to proceed with the awards.
The disputes relate to the supply, testing and commissioning of 14 reach stackers and 15 forklift trucks to support port operations.
In the first tender, valued at $7.34 million (Sh946 million), KPA awarded the contract to Amberton Holdings FZC after rejecting Kalmar’s lower bid of $5.8 million (Sh754.7 million).
Board records show that KPA’s evaluation committee disqualified Kalmar over inconsistencies in its pricing schedule, particularly on the cost of strategic spare parts. The tribunal upheld the finding, noting that the quoted $62,306.89 covered one lot instead of the required 14, amounting to a material deviation affecting the bid’s substance.
The committee also found that Kalmar altered a required quantity in its price schedule, leading to its disqualification at the financial evaluation stage. Amberton was subsequently deemed the only fully responsive bidder and awarded the contract despite the higher price.
Kalmar argued that the discrepancies were minor typographical errors that did not affect the total bid price or its ability to deliver the contract.
The firm also questioned the eligibility of the winning bidder, saying the restricted tender was limited to original equipment manufacturers or their authorised agents.
However, the tribunal found that bidders were required to complete price schedules strictly in line with tender instructions and ensure that listed items matched the specified goods and services.
In the second dispute, involving a forklift tender valued at $3.5 million (Sh455 million), Kalmar was disqualified at the preliminary stage after failing to submit complete audited financial statements.
The Kenya Ports Authority stand at the Agricultural Society of Kenya’s Mombasa international trade fair in November last year.
Photo credit: Kevin Odit | Nation Media Group
The tribunal noted that Kalmar had only provided audited accounts and an auditor’s report for 2022, but failed to submit similar documentation for 2023 and 2024 as required.
“Three bids, including the applicant’s, were found to be non-responsive and were consequently disqualified from further consideration,” the board said in its ruling.
The contract for Lot 1 was awarded to Brookwood Technical Ltd at $2.8 million (Sh362 million), while a separate lot was awarded to another bidder at $721,306 (Sh93.3 million).
Kalmar maintained that it had submitted the required financial records and that any gaps were minor and could have been clarified. It also challenged Brookwood’s eligibility, arguing that the tender was restricted to specific manufacturers already in use at the port.
But the tribunal held that compliance with mandatory requirements was non-negotiable and dismissed both applications, clearing the way for KPA to proceed with the procurement.
Kalmar had sought orders to annul the awards, reinstate its bids and compel fresh evaluations.
