The Kenya Development Corporation (KDC) has been thrust into the spotlight after an explosive audit flagged more than Sh400 million in irregular contracts, raising fresh concerns over procurement integrity at the state-owned financier.
A letter from the Public Procurement and Regulatory Authority (PPRA), dated November 10 and seen by The Informant, demanded answers from KDC Director General Norah Ratemo on how 44 companies were awarded contracts without following due process.
PPRA Director General Patrick Wanjuki said the authority had received multiple complaints alleging that tenders were issued outside the law, prompting a detailed performance audit.
Among the contracts under scrutiny is a Sh34.7 million deal for medical insurance for KDC’s board and staff, Sh12.93 million for general insurance, and Sh13.43 million for security services across Uchumi, Utalii and Finance houses.
A further Sh63.71 million contract for lifts installation at Uchumi House is also being examined.
Several other multimillion-shilling projects have been flagged.
They include Sh6 million for an event in the Western region, Sh33 million for a proposed CCTV system at Utalii House, and Sh10 million for new furniture.
The audit is also reviewing Sh26.45 million for repainting Uchumi House, Sh9.82 million for new furniture works at the same building, Sh79.77 million for the overhaul of wet areas at Utalii House, Sh11.45 million for fencing the KNTB plot, and Sh28.79 million for the completion of fit-out works at Uchumi House.
“In view of the above, and pursuant to the provisions of Section 43(1) of the Public Procurement and Asset Disposal Act 2015, the authority has initiated a performance audit of the above contracts,” reads the letter from Mr Wanjuki.
KDC has been ordered to upload all procurement plans, user requisitions, evaluation reports, award letters, tender notices, opening minutes and other records onto the Public Procurement Information Portal, as required under PPRA guidelines.
Compliance officers may also physically visit the corporation to inspect documents and interview staff involved in the flagged procurements.
But KDC boss Norah Ratemo has hit back, insisting the corporation followed the law and accusing the report of containing inaccuracies.
In her response, she said some of the tenders cited had not even been awarded and warned against reliance on unverified figures.
“At this point, the figures and claims shared are not officially verified. Kenya Development Corporation follows procurement laws and established internal controls and we encourage reliance on accurate and official information,” she said.
Ms Ratemo added that some grievances had already been resolved through a PPRA letter dated November 12, while other projects were still in the pipeline and had not been procured.
Despite the storm, she maintained that KDC remains committed to transparency and ensuring that public resources are used prudently to support national development goals.
The audit is expected to determine whether the multimillion-shilling tenders were issued legally or whether taxpayers have been exposed to yet another procurement scandal.
