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Kenyan Govt Announces Multibillion Tender Reserved for Korean Firms Only

by Fred Ongera
September 24, 2024
Reading Time: 8 mins read
Davis Chirchir CS for Roads and Transport before the senate plenary session responding to questions on road maintenance and development status in the country. Photo/Chirchir X account.

Davis Chirchir CS for Roads and Transport before the senate plenary session responding to questions on road maintenance and development status in the country. Photo/Chirchir X account.

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The Kenya Urban Roads Authority (KURA) has announced a tender that is preserved for Korean firms. KURA made the announcement on September 24, inviting interested players to bid.

The project, according to the notice, will be funded through a loan from the Export-Import Bank of Korea from the resources of the Economic Development Cooperation Fund (EDCF) of the Republic of Korea.

According to KURA, the Kenya government through KURA intends to use the loan, amounting to USD 59,000,000 (Ksh7.57 billion) in the establishment of Bus Rapid Transit Line 5 Project.

“Restricted for firms from the Republic of Korea only and will be conducted in accordance with the Economic Development Cooperation Fund (EDCF) guideline,” read part of the notice.

Image of the Outer Ring Road in Nairobi five years ago. Photo/nairobinews.nation.africa.
Image of the Outer Ring Road in Nairobi five years ago. Photo/nairobinews.nation.africa.

Implementation of the Project

All Interested and qualified Korean bidders will be required to implement the different bits of the project as outlined by KURA.

The scope of the work as outline by KURA include:

  1. All Works along the BRT Line 5.
  2. All road works involved in the construction of a 2-lane BRT line, along the entire length of the Outer Ring Road (ORR) in Nairobi County with an estimated length of 10.5km.
  3. Construction of the 3 No. River Bridges and 2 No. Overpass Bridges of approximately 1024m and 323m respectively.
  4. Construction of 13 No. BRT stations
  5. Construction of new footbridges and modification of existing footbridges
  6. Installation of electro-mechanical works
  7. Construction of drainage system along (ORR)
  8. Street lighting along ORR
  9. Landscaping Works

The project will also encompass all works on the proposed BRT depot including building works of approximately 1365m2 floor area, civil works within the BRT depot; parking spaces and access roads, fence, drains, and septic tank.

The selected contractor will also be tasked with the installation of all electro-mechanical works, civil and installing electrical and mechanical works supporting ITS Components.

Bidding will be conducted through Competitive Bidding (CB) procedures as specified in the Guideline for Procurement under EDCF Loans, as per the KURA notice.


Also Read: KURA Forced to Explain Cancellation of 95 Lucrative Tenders After Uproar


KURA went on to outline various qualifications for eligible bidders. Firms interested to win the tender have to be Korean as specified in the beginning. In addition, the firms will be required to: 

  1. Demonstrate that, in the capacity of prime contractor, they should have successfully completed at least two (2) projects of a similar nature within the last ten (10) years. Bidders are required to submit certified copies of Completion Certificates or equivalent documents duly certified together with the telephone number and email address of the previous Employer/Awarding Agency.
  2. Required to provide full and detailed particulars of their financial capability to perform such work and to demonstrate that they have experienced key personnel with appropriate qualifications. Net worth for the last three years [2021,2022,2023] shall be positive respectively.
  3. Works must be completed within Twenty-Four (24) Months inclusive of three (3) months of mobilization period and that they are required to provide detailed particulars of all the items of equipment and plant that they deem necessary to deploy for the timely completion of the works Bidders who are proven non-performers need not apply as they will be disqualified.
  4. All pending litigation will be treated as resolved against the bidder and so shall in total not represent more than fifty percent [50%] of the bidder’s net worth.
  5. Have a minimum Average Annual Construction Turnover for the last three [3] years from 2021 to 2023 shall be more than USD 30,000,000 [Thirty Million US Dollars) (In case of JVA, one partner shall meet 40% of the requirement).
  6. Demonstrate access to, or availability of, financial resources such as liquid assets, unencumbered real assets, lines of credit, and other financial means, other than any contractual advance payments to meet the cash-flow requirement of USD 5,000,000 [Five Million US Dollars] (In case of JVA, one partner shall meet 40% of the requirement).
  7. Prove participation as contractor, management contractor, or subcontractor, in at least two (2) Construction Contracts within the last ten [10] years each with a completion value of at least USD 20,000,000 [Twenty Million US Dollars)

KURA Gives Application Details

Interested eligible bidders are asked to obtain more information on the application process from KURA and inspect the bidding documents at the provided address (Director General Kenya Urban Roads Authority, P. O. Box 41727-00100, 4th Floor, North Wing, Block D, Barabara Plaza, Mazao Road, Off Airport South Road, Nairobi, Kenya They can also call through telephone No: +254 20 8013844) from 09:00 to 16:00 hours.

A complete set of bidding documents may be purchased by any interested bidders on the submission of a written application to the address and upon payment of a non-refundable fee of Kenya Shillings 50,000.00.

The method of payment will be banking certified cheque to Kenya Urban Roads Authority’s Bank Account:

Account Name: Kenya Urban Roads Authority

Account Number: 1130723704

Bank Name: Kenya Commercial Bank

Branch Name: Moi Avenue, Nairobi

Branch Code: 01100

Swift Code: KCBLKENX

Narration: Name of Bidder

In the announcement, KURA declared that upon submission of a written request by a bidder and after payment of the non-refundable fee, bid documents will be sent by registered airmail.

However, KURA will not be held responsible under circumstances of late delivery or loss of the documents so mailed.

A mandatory pre-bid meeting will take place on 15th October 2024, as from 10:00am, Nairobi Time at the KURA Board Room, 4th Floor, North Wing, Block D, Barabara Plaza, Mazao Road, Off Airport South Road, Jomo Kenyatta International Airport, Nairobi, Kenya.

On the same date, the employer will conduct an organized mandatory site visit at the proposed BRT corridor and depot construction site.


Also Read: KURA Opens Application for Sh8.4m Intelligent Transport Project Tender


Bidders’ representatives are required to come with an original introduction letter from the bidder with the bidder’s letter head clearly indicating their names and identification document number, and an original and copy of their identification document.

Bidders will be required to submit one (1) original, five (5) copies and one (1) soft copy in CD/ flash drive of all tender documents in plain sealed envelope(s), with the tender name and tender number clearly marked on the right-hand side corner and bearing no indication of bidder’s name on the envelope (s), delivered by hand or by registered mail to the address below on or before 9th November, 2024 at 11:00 am Nairobi time. All bids must be accompanied by a bid security of USD 840,000.00. Late bids shall be rejected.

KURA will not be responsible for any costs or expenses incurred by bidders in connection with the preparation or delivery of bids.

KURA further warns that any form of canvassing will lead to automatic disqualification.

Follow our WhatsApp Channel for real-time news updates!

https://whatsapp.com/channel/0029VaB3k54HltYFiQ1f2i2C

Director General-KURA, Eng. Silas Kinoti during the Global Infrastructure Cooperation Conference (GICC), 2024 that was held in Seoul, South Korea. Photo/KURA
Director General-KURA, Eng. Silas Kinoti (second from right) during the Global Infrastructure Cooperation Conference (GICC), 2024 that was held in Seoul, South Korea. Photo/KURA
Tags: KoreaKURA
Fred Ongera

Fred Ongera

I am a passionate digital media journalist with a keen eye to emerging trends and having deep understanding of digital platforms. I have specialized in creating compelling stories on diverse topics. I am determined to constantly inform the public on emerging events as they happen. My enthusiasm for the evolving digital media landscape drives me to explore new media formats and techniques making me a dynamic voice in journalism.

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