Photo | courtesy.
The High Court has overturned a decision by the Public Procurement Administrative Review Board (PPARB) that had dismissed Minet Insurance Brokers’ appeal over a lucrative Sh179 million staff medical scheme tender awarded by the Kenya Revenue Authority (KRA) to Liaison Insurance Brokers.
The court ruled that the PPARB erred in endorsing KRA’s interpretation of the tender requirement for valid registration with a regulatory body, which led to Minet being penalized during the technical evaluation stage for lacking current practicing certificates for certain personnel.
The tender, initially awarded to Liaison, was challenged by Minet, which argued that the requirement for a valid registration was misinterpreted to mean a current practicing license.
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Minet contended that this interpretation unlawfully amended the original tender terms, as the documents explicitly specified practicing licenses only where necessary such as for the medical doctor position, where a valid Kenya Medical Practitioners and Dentists Council (KMPDC) license was required.
PPARB, however, upheld KRA’s evaluation process, arguing that the procuring entity was best positioned to interpret the tender requirements.
KRA maintained that valid registration implied active practicing licenses, further claiming Minet had failed to seek clarification during the pre-bid meeting.
Liaison supported this view, citing dictionary definitions to assert that one-off registration certificates were insufficient proof of qualification.
In its determination, the High Court disagreed, holding that the ordinary meaning of valid registration refers to a legally recognized entry in a professional register not necessarily an active license to practice.
The court noted that expanding the term to include a practicing license amounted to an unlawful modification of the tender criteria, which disadvantaged bidders who relied on the plain language of the tender documents.
As a result, the court quashed the PPARB’s decision and directed the board to reconsider the matter in light of the court’s findings, potentially opening the door for Minet to be re-evaluated in the tender process.
