The High Court has ruled that the absence of competition in the awarding of state tenders does not render the procedure unconstitutional, dismissing a petition where Busia Senator Okiya Omtata had challenged the direct procurement for a tender to supply second generation number plates.
- The government kickstarted the process to upgrade number plate production equipment in 2013 and awarded a tender to Tropical Technology Ltd. in April 2014.
- In 2015, the government begun another process to purchase materials but the ensuing tender was bogged down by numerous court cases before being awarded to Tropical Technologies Ltd.
- In an affidavit filed by Omtatah, he cited that there was a secret floating of a tender to supply, deliver, install, test, and commission securitized license plates production facility and raw materials after new appointments at the Ministry of Interior.
The tender was awarded to M/S Chalbi Industries Ltd. at the recommendation the National Transport and Safety Authority (NTSA).
Omtatah argued that the procurement process was wasteful because equipment, such as hot stamping and pneumatic press machines, remained idle at the Kamiti Maximum Prison where prison staff had already produced 10,000 new generation number plates. He also faulted the selection process on constitutional grounds, including breaching public participation requirements.
Why it Matters
The launch of the second generation number plates in August 2022 roused controversy because motorists were required to replace their number plates at the cost of KSh 3,050. Initially, the directive also imposed a fine or a sentence of upto six months for those who didn’t replace their car’s plates within 18 months.
Despite Senator Omtatah’s petition, the NTSA has been rolling out the new generation number plates. In August and September 2024, the regulator asked motorists to collect more than 102, 000 new number plates that had remained unclaimed.
A key element of Senator Omtatah’s petition was that direct procurement went against the rules of fair competition, which is a critical element in ensuring accountability and fair pricing.
“The fact that direct procurement has been used for purposes of procuring does not necessarily translate into the process being unlawful and constitutional. It is lawful method of procuring goods and services as long as the prescribed legal conditions are met and the process is done in good faith,” Justice Lawrence Mugambi said in the ruling.
In its defence, the NTSA had contended that Omtatah did not provide the full facts of the case because the number plates were not produced by M/S Chalbi Industries.
The transport regulator also argued against public participation for every procurement, stating that it would be too cumbersome and would derail activities by government agencies. In his ruling, the judge faulted Senator Omtatah for not raising the issue with the Public Procurement Regulatory Authority which is mandated to investigate the claims of ‘secret tendering’.
