The Public Procurement Administrative Review Board (PPARB) has cleared the way for Stabex International to supply diesel worth Sh458 million to Kenya Power.
This decision follows a legal battle triggered by Rubis Energy, which had contested the award of the lucrative fuel contract.
Rubis Energy moved to the review board, claiming the evaluation process was unfair and flawed.
After reviewing the submissions, the regulatory body dismissed the petition, allowing the state-backed utility firm to proceed with the procurement.
The contract requires Stabex International to deliver heavy fuel and diesel to power stations across the country.
Kenya Power and Lighting Company (KPLC) relies on these thermal plants to support the national grid during peak demand or low hydropower generation.
The procurement process had been frozen temporarily while the board looked into the allegations raised by the aggrieved bidder.
With the dispute now settled, the power utility can finalise the contract documents with the winning supplier.
Legal challenges from losing bidders have frequently slowed down major public procurement processes in the Kenyan energy and infrastructure sectors.
The ruling protects the utility from immediate supply disruptions that could affect off-grid stations.
Stabex International has been expanding its footprint in the local fuel distribution market, competing directly with established multi-national brands.
The energy provider is expected to commence fuel deliveries immediately to prevent any generation deficits.
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