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Senators are investigating how Kenya Power awarded a Sh2.9billion smart meter contract to a local company with lawmakers raising the possibility of collusion in the deal.

Raising more questions was how the utility firm requested smart meters and transformers to be listed as common user items just prior to the award of the tender.

Yesterday, the Senate Energy Committee chaired by Wahome Wamatinga (Nyeri) took the power firm and the Ministry of Public Works officials to task over how the tendering process of the smart meters was hurriedly done and tender awarded to Harley Berry Limited.

This is after the firm’s then-acting Managing Director Geoffrey Muli requested the then Energy Principal Secretary Gordon Kihalang’wa to write a letter dated July 15, 2022, to the Principal Secretary State Department of Public Works Solomon Kitungu on the inclusion of the energy meters and transformers in Supplies Branch Catalogue.

Three days later in a letter dated July 18, 2022, Kihalangwa requested the State Department of Public Works to include the energy meters and transformers in the Supplies Branch catalogue on electrical materials.

Equipment design specification

“The purpose of this letter is to request your Supplies Branch to include in their catalogue under electrical material from Original Equipment Manufacturers (OEM) and Original Design Manufacturers (ODM) of meters and Transformers. KPLC has attached the specifications as per the requirement of the Public Procurement and Asset Disposal Act,” reads part of Kihalangwa’s letter.

However, Kenya Power defended the move saying that the decision to use Supplies Branch Framework contracts was informed by a letter from the Ministry of Energy and Petroleum.

According to the then Kenya Power Acting Managing Director Rosemary Oduor, Harley Berry Limited was introduced to them as suppliers listed with the Supplies Branch and having in stock over 250,000 meters available.

“This coincided with the period where Kenya Power was facing an acute shortage of meters that lasted several months leading to a huge backlog of customer applications for new connections and replacement of faulty meters,” said Oduor.

Oduor told the committee that the supply of meters was interrupted by prolonged cases at the Public Procurement Administrative Review Board (PPARB) and the High Court challenging Kenya Power tenders in 2022.

Oduor further stated that Kenya Power opted to use the contract for Harley Berry Limited which was procured by Supplies Branch and listed under a circular for Supply and delivery of Electrical items.

Procurement agency

“The framework contract tender was done and awarded by Supplies Branch, a procurement agency for use by Government Ministries/Departments and Public Institutions under a multi-user framework contract arrangement pursuant to Section 7 (3) of the Public Procurement and Asset Disposal Act 2015,” charged Oduor.

However, Oduor’s response irked the Senators with Wamatinga questioning at what point Kenya Power decided that smart meters are common user items, adding that during their probe they could not find the physical address of Harley Berry Limited.

“We looked all over this country and we could not find Harley Berry anywhere. Is this really a Kenyan company which has employed the young Kenyan people?” posed Wamatinga.

On his part, Boni Khalwale (Kakamega) questioned why the request for the inclusion of the energy meters and transformers was not approved by the Kenya Power Board.

“We went round this country looking for Harley Berry but we could not. Where is the approval of the Board by minutes on the inclusion of the Energy meters and transformers as common user items?” posed Khalwale.

In her response, Oduor disclosed that the Board does not approve individual procurement, adding that Kenya Power was under pressure from the customers to make available smart meters.

“By using the Supplies Branch contract, KPLC was able to address the meter shortage by shortening the delivery period of meters to approximately 14 days from issuance of the purchase order to Harley Berry to delivery and acceptance by Kenya Power,” she said.

She went on: “KPLC conducted a due diligence exercise including inviting other suppliers holding Supplies Branch contracts for supply of meters to confirm if they had ready stock but none was found.”

Currently, Kenya Power has sufficient stock of meters with no deficits, a move that follows the deployment of various sourcing strategies that have helped fast-track deliveries to effectively curb shortages.

According to the records seen by People Daily, Harley Berry delivered 320,727 smart meter pieces to KPLC at a cost of Sh2.9 billion.