NAIROBI, Kenya – The Independent Electoral and Boundaries Commission (IEBC) has admitted making an error in its tender for a new elections management system but denied allegations that the procurement process was designed to favour South Korean firm Miru Systems Limited.
The commission said it mistakenly required bidders to provide performance security equivalent to 20 per cent of the contract price, despite the law capping performance security at 10 per cent.
IEBC said it had identified the error and was preparing an addendum to correct the requirement.
The admission comes as the commission faces a challenge over its tender for the Integrated Elections Management System (IEMS), which was advertised on August 11.
IEBC acknowledges tender error
IEBC told the procurement review process that the 20 per cent performance security requirement was included in error.
The commission said the requirement would be corrected through an addendum to ensure compliance with the applicable procurement law.
While acknowledging the mistake, IEBC maintained that the error did not invalidate the entire tender and defended the remaining requirements against claims that they were discriminatory or unfair.
The commission is seeking to have the challenge dismissed and the suspension of the procurement process lifted so that it can proceed with the next stages.
Commission denies favouring Miru Systems
The commission described the claims as speculative, arguing that the applicant had not identified a specific tender requirement that unfairly favours the South Korean company.
“The tender is strict, it’s either you are compliant or not; for the bidder to succeed, it should be hundred percent,” IEBC argued.
On tax compliance, the commission said bidders would be required to demonstrate compliance using the relevant tax instruments applicable in their respective countries.
The allegations of preferential treatment have emerged amid scrutiny of the procurement process as IEBC prepares to replace or upgrade its elections management infrastructure ahead of future elections.
IEBC defends Sh30 million tender security
The commission has also defended the Sh30 million tender security required from bidders.
IEBC argued that the procurement is structured as a framework contract and that procurement law allows tender security to be specified as an absolute amount rather than as a percentage of the tender value.
The position has been challenged by Galadirel Investments Limited, which argues that the tender document does not provide the value of the tender despite specifying a Sh30 million security requirement.
“The Applicant has perused the said tender document and has found the following breaches; There is no value of the tender provided despite the Respondent issuing a tender security value of Ksh.30,000,000 contrary to Section 61 of the PPADA,” court documents state.
Bidder challenges tender
Galadirel Investments Limited has challenged the procurement before the Public Procurement Administrative Review Board (PPARB), arguing that the tender is flawed, discriminatory and contrary to Article 227 of the Constitution.
Through lawyer Julius Miiri, the applicant has argued that the tender contains material omissions, contradictions, undefined requirements and incomplete provisions.
The company says these shortcomings could affect competition, evaluation and equal treatment of prospective bidders.
“The aforesaid omissions, contradictions and ambiguities are material and have the potential to affect competition, responsiveness, evaluation, comparability of tenders and equal treatment of tenderers, thereby rendering the procurement process procedurally defective,” the applicant argues.
The challenge has temporarily placed the procurement process under scrutiny as the review body considers whether the tender complied with public procurement requirements.
IEBC cites local content requirement
The electoral commission has also defended its provisions on local participation.
IEBC said the successful bidder would be required to meet a 40 per cent local content threshold, which it says is intended to promote Kenyan participation and facilitate skills and technology transfer.
The requirement is part of the commission’s broader position that the tender is open to compliant bidders and does not restrict competition in favour of a particular supplier.
