Cabinet Secretary for the National Treasury and Economic Planning John Mbadi has slapped two firms with a 3-year ban.

In the Kenya Gazette notice published by Kenya Law on Saturday, November 16, 2024, CS Mbadi debarred Sanali Limited and Efranjivercity Limited.

According to the notice, the two firms have been prohibited from participating in Public Procurement and Asset Disposal proceedings until when the ban period lapses.

“It is notified for the general information of the public that pursuant to the powers conferred to the Cabinet Secretary under regulation 22 (5) (k) of the Public Procurement and Asset Disposal Regulations, 2020, that— Sanali Limited, Efranjivercity Limited, have been debarred by the Public Procurement Regulatory Authority from participating in Public Procurement and Asset Disposal proceedings, on the grounds specified under section 41 (1) (d) of the Act, for a period of three (3) years, with effect from August 20, 2024,” the notice read in part.

What the Act says

According to the Public Procurement and Asset Disposal Act, one can be debarred for committing an offence relating to procurement under any other Act or Law of Kenya or any other jurisdiction.

It adds that one can be prohibited for breaching a contract for a procurement by a public entity including poor performance.

“The Board shall debar a person from participating in procurement or asset disposal proceedings on the ground that the person has, in procurement or asset disposal proceedings, given false information about his or her qualifications,” it reads in part.

“Has refused to enter into a written contract as required under section 135 of this Act,” it adds.

Other grounds for debarment include defaulting on tax obligations and being found guilty of unfair serious violation of fair employment laws and practices among other reasons.

In the notice, Mbadi did not divulge more details as to why the two firms had been redlisted.

Mbadi’s strategy

After taking the instruments of power from his predecessor Njuguna Ndung’u, CS Mbadi plans to complete digitisation of the government’s procurement system.

Mbadi emphasized that the e-procurement system will ensure transparency in the procurement process, which currently consumes about 50 per cent of the government’s annual budget.

“Procurement and supply chain management is an area where we don’t have an option. We must prudently use public resources by making the procurement system efficient and not open or prone to abuse,” Mbadi stated.