A tender for the establishment of the Bus Rapid Transit (BRT) Line 5 Project, worth Ksh7 billion, has been challenged in court. Beyond Trading Company Limited has filed a petition at the Milimani Law Courts against the Kenya Urban Roads Authority (KURA) and the Public Procurement Administrative Review Board (PPARB).
The contested tender, KURA/DEV/HQ/426/2024-2025, is part of a government-to-government loan agreement between Kenya and South Korea, funded by the Korea Exim Bank (KEXIM).
The project aims to improve Nairobi’s public transport infrastructure. The dispute centres on allegations that KURA violated constitutional and procurement laws by excluding the petitioner’s bid and favouring a single Korean contractor.
The petition filed on May 16, 2025, by Muge Law Advocates, contends that there was a lack of fair competition, procedural irregularities, and discriminatory eligibility requirements in the procurement process. The petitioner
KURA Sued for Awarding Tender to Korean Firm
Some of the grievances include:
- Forceful eviction of the tenderer and late bid: Beyond Trading says its Director, Mr. Paul Mungai, tried to submit a bid at 11:40 AM on April 17, 2025—40 minutes after the 11:00 AM deadline—but was denied entry and asked to leave by the Tender Opening Committee. The petitioner claims this was a “forceful eviction” that blocked bid submission.
- Lack of fair competition and equal opportunity: The petitioner argues that the tender process lacked competition because only one bid was received by the deadline. CK Solution Co. Ltd., another potential bidder, shared this concern in letters to KURA dated April 25 and April 28, 2025, and asked for a re-tender.
Also Read: KURA Announces 24-Hour Traffic Disruption in Nairobi
- Procedural integrity violations: Both Beyond Trading and CK Solution Co. Ltd. allege that the tender opening venue was changed without notice and that bids were unfairly rejected.
- Discriminatory eligibility restrictions: A key issue is the loan agreement’s requirement that bidders come from “Eligible Source Countries”—mainly Korea for foreign currency financing. Beyond Trading argues this restriction is discriminatory and violates Article 227 of the Kenyan Constitution, which promotes fair competition and non-discrimination in procurement.
Roads Authority Defend Itself
In its response, KURA, through Senior Supply Chain Management Officer Risper Nyamoiya Luka, denied all allegations of wrongdoing, stating that the award was in compliance with loan agreement which restricted bidding to Korean firms.
The restriction favoring Korean firms, KURA stated, is mandated by the loan agreement and KEXIM EDCF Guidelines, which are legally binding.
KURA also maintained that such bilateral agreements, under Article 2(5) of the Constitution, are part of Kenyan law and override conflicting provisions in the Public Procurement and Asset Disposal Act (PPADA).
In addition, KURA maintained that the tender was publicly advertised and conducted transparently. The authority denied allegations of conducting the exercise at an unannounced venue, stating that the tender opening took place at the North Wing Meeting Room, Barabara Plaza, as published.
KURA also confirmed that one of the disputed bids was submitted late and was therefore rejected. Beyond Trading’s bid was declared “substantially non-responsive” for failing to include the required “Declaration of Participation in EDCF-Financed Projects” as mandated by Clause 3.2 of the Instructions to Bidders (ITB).
Also Read: KURA Forced to Explain Cancellation of 95 Lucrative Tenders After Uproar
In the interim, the project must await outcome of the Constitutional Petition.
On June 23, 2025, the Kenya Urban Roads Authority was cleared by the procurement watchdog PPARB to award a Ksh7.6 billion contract for building BRT Line 5 along Nairobi’s Outer Ring Road.
KURA had invited international bids in September 2024, with the bidding process closing in October 2024. Construction was scheduled to start in early 2025.
Follow our WhatsApp Channel and X Account for real-time news updates.
