The Public Procurement and Administrative Review Board (PPARB) has revoked a Sh2.179 billion affordable housing contract awarded to financially embattled Jasir Contractors, sparking fresh concerns about transparency in Kenya’s flagship housing programme.
The Housing Department had granted the massive contract to Jasir despite the company facing a court-ordered debt of Sh1.8 million and an active Sh4.2 million tax dispute with the Kenya Revenue Authority (KRA).
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In a scathing ruling, the PPARB cited glaring inconsistencies in the contractor’s financial documents, including alterations, omissions, and incomplete disclosures that were overlooked during evaluation. Even more troubling, the board found that rival bidder Jijenge Precast, whose submission was competitively priced and had fewer discrepancies, was disqualified on grounds similar to those ignored in Jasir’s case.
The board declared this selective application of procurement rules as not only unfair but also a breach of due process and financial prudence. The company at the centre of the controversy, jointly owned by Jasper Ireri Mbungu and Felix Kamunde, has been mired in tax and debt litigation for years. Its admission of cash flow struggles raised serious red flags about its capacity to mobilise the capital needed for such a large-scale public project.
The decision by the PPARB to reverse the award is a win for accountability but also an indictment of a system that critics say continues to reward opacity over merit.
With country facing an acute housing shortage and targeting 250,000 new low-cost units annually under its affordable housing scheme, procurement integrity has come under increasing public scrutiny. This is not the first time a controversial tender has cast shadows over the multibillion-shilling program.
A prior deal involving MHOA Africa linked to Turkish businessman Harun Aydin was also flagged over potential irregularities. These repeated lapses highlight institutional complicity and a need for sweeping reforms in how taxpayer-funded contracts are vetted.
Experts warn that unless Kenya implements a robust, tech-driven procurement intelligence system, the housing dream risks turning into a hotbed of unchecked corruption. Proposals include a digital ledger accessible to the public, capturing bidder financials, legal standing, and performance history, and mandatory pre-award audits for tenders exceeding Sh1 billion.
Such systems, if independently audited and fully transparent, would help stem abuse while ensuring that national development isn’t compromised by poor vetting and vested interests.
