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Post Reply: Court of Appeal Halts Kebs Pre-Exports Inspection Tender

<blockquote><div class="quotetitle">Quote from <a class="profile-link highlight-moderator" href="https://lawguide.co.ke/understanding-law/legal-forum/profile/lawyer/">Lawyer</a> on May 8, 2025, 5:34 am</div><div id="pl-5287" class="panel-layout">
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<p dir="ltr" data-pm-slice="1 1 []">The Court of Appeal in Kenya has issued a temporary injunction halting a multi-million shilling tender process initiated by the Kenya Bureau of Standards (Kebs) for the prequalification of firms to conduct Pre-export Verification of Conformity (PVoC) services for the period 2025–2028. The decision stems from a legal challenge by a local contractor, Gammadelta Eastern Africa Limited, which alleges bias against local firms in the tender process.</p>
<p dir="ltr">Kebs launched the tender to appoint firms responsible for verifying the conformity of goods before they are exported to Kenya. The PVoC program is designed to ensure that imported goods meet Kenyan standards, safeguarding consumers from substandard products. The tender, covering the years 2025 to 2028, attracted both local and international bidders, but concerns over the fairness of the procurement process led to legal action.</p>
<p dir="ltr">Gammadelta Eastern Africa Limited, a local contractor, filed an appeal claiming that the tender process was structured to favor foreign firms, sidelining Kenyan companies. The contractor argued that Kebs’ evaluation criteria and procurement practices undermined the principles of fairness, transparency, and competitiveness enshrined in Kenya’s Constitution and the Public Procurement and Asset Disposal Act.</p>
<p dir="ltr">On 7th May 2025, the Court of Appeal granted interim orders suspending the tender process pending the hearing and determination of Gammadelta’s appeal. The court’s decision was prompted by the need to address allegations of bias and ensure that the procurement process adheres to legal and constitutional standards. The ruling has effectively paused Kebs’ efforts to award the tender, which is critical to the regulation of imported goods in Kenya.</p>
<p dir="ltr">The judges emphasized that public procurement must uphold ethical standards and promote inclusivity, particularly for local firms. They noted that the allegations raised by Gammadelta warranted a thorough review to prevent potential irregularities in the tendering process. The court’s intervention underscores the judiciary’s role in overseeing public procurement to ensure accountability and fairness.</p>

<h3 dir="ltr"><strong>Implications for Kebs and Local Contractors</strong></h3>
<p dir="ltr">The suspension of the tender has significant implications for Kebs, which relies on the PVoC program to maintain the quality of imported goods. A prolonged delay in the tender process could disrupt the inspection of imports, potentially affecting trade and consumer safety. Kebs has not yet issued a public statement on the ruling, but the agency will need to address the court’s concerns to move forward with the tender.</p>
<p dir="ltr">For local contractors like Gammadelta, the court’s decision is a temporary victory in their push for equitable access to public tenders. The case highlights ongoing challenges in Kenya’s procurement system, where local firms often face barriers when competing against international companies. The outcome of the appeal could set a precedent for how public entities design and implement tenders to promote local participation.</p>
<p dir="ltr">This is not the first time Kebs’ procurement processes have faced legal scrutiny. In 2024, Swiss firm Sicpa SA challenged a Kebs tender for the provision of standardization mark stickers, alleging that specific clauses were designed to exclude it from the bidding process. The Court of Appeal upheld Kebs’ right to customize its bid documents but emphasized the need for transparency and fairness. Similarly, past tenders for vehicle inspection and other import verification services have been mired in controversies, with firms accusing Kebs of favoritism and non-compliance with procurement laws.</p>
<p dir="ltr">These recurring disputes point to systemic issues in public procurement, including allegations of manipulation, lack of transparency, and insufficient support for local businesses. The government’s efforts to strengthen procurement regulations, such as the Public Procurement and Asset Disposal Act, aim to address these challenges, but enforcement remains a work in progress.</p>

<h3 dir="ltr"><strong>Next Steps</strong></h3>
<p dir="ltr">The Court of Appeal has yet to schedule a full hearing for Gammadelta’s appeal. In the meantime, Kebs is barred from proceeding with the tender until the court issues a final ruling. Stakeholders in the import and trade sectors will be closely monitoring the case, as its outcome could influence future procurement practices and the balance between local and international participation in Kenya’s public tenders.</p>
<p dir="ltr">The case also raises broader questions about how public entities can design tenders that meet international standards while fostering local economic empowerment. As Kenya continues to integrate into global trade networks, ensuring a level playing field for all bidders will be critical to maintaining public trust and economic growth.</p>

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