Kenya Pipeline exposed: Local Contractors Cry Foul Over ‘Tailored’ Multi-Million Tender
A storm is brewing at Kenya Pipeline Company (KPC) after local contractors raised alarm over what they term as a “deliberately rigged” tendering process that favors a single company, Weld-con Engineering, in a high-value infrastructure project across three major depots.
On March 11, 2025, KPC advertised tender number KPC/PU/OT-163/PROJECTS/NBI/24-25, which seeks the Engineering, Procurement, and Construction (EPC) of three new storage tanks, each with a capacity of 10,000 cubic meters, five additional tanks of varying capacities, and infrastructure upgrades at Kisumu (PS28), Eldoret (PS27), and Nakuru (PS25) depots.
While the tender appeared on paper to be a significant step toward enhancing oil transport efficiency in Kenya, it has now been flagged by several local contractors as grossly unfair, restrictive, and crafted to edge out potential competitors in favor of Weld-con Engineering — a firm allegedly entangled in a string of similar contentious awards.
Multiple local contractors claim that the tender was custom-built to suit Weld-con Engineering through overly restrictive requirements that effectively locked out other qualified Kenyan firms. These claims have ignited outrage within the construction and procurement sectors, as it appears to fly in the face of constitutional demands for fairness, competitiveness, and transparency in public procurement.
“This is not the first time we are seeing this kind of bias at KPC,” said one contractor who requested anonymity for fear of blacklisting. “The same people who are supposed to be custodians of public interest are brokering deals behind the scenes and manipulating the procurement process.”
Sources point fingers directly at KPC’s top brass — the Managing Director, General Manager of Procurement, and General Manager of Infrastructure — accusing them of colluding with Weld-con Engineering for financial gain. The trio, it is alleged, has been on a ‘deal-making mission’, using their positions to orchestrate tenders in ways that benefit the contractor in question.
The credibility of KPC’s procurement process has previously been challenged. In 2023, the Public Procurement Administrative Review Board (PPARB) nullified a contract after it was discovered that KPC had awarded the same tender to two different bidders — a glaring violation of procurement integrity. In another case, KPC disqualified a local bidder over a minor clerical issue, claiming the submitted Power of Attorney was addressed to KERRA instead of KPC, even though evidence indicated otherwise. PPARB later intervened, ordering a re-evaluation of the tender.
“These incidents reflect a deeply rooted culture of impunity and manipulation,” said a Nairobi-based legal expert familiar with public procurement disputes. “The same officials seem to operate with zero accountability, and that needs to change.”
Local firms have reportedly lodged multiple complaints directly with KPC’s senior management and the Public Procurement Regulatory Authority (PPRA). But their efforts have hit a brick wall, with officials allegedly ignoring the concerns. The situation is further complicated by the fact that the KPC CEO, who also acts as the accounting officer, holds ultimate control over tendering decisions — making internal accountability virtually impossible.
Contractors are also accusing KPC of leveraging the so-called “Jurispesa” system — a term used to describe manipulation of the judiciary — to sabotage legal attempts to block or delay questionable tenders. In one instance, contractors who had obtained stay orders on the tender process found the orders overturned at the last minute, without due process.
As the deadline for the controversial tender passed on April 9, 2025, local contractors fear the worst — that the contract will be handed to Weld-con Engineering despite widespread objections and unresolved complaints. There are growing calls for the immediate suspension and investigation of the KPC CEO, GM Procurement, and GM Infrastructure.
“These individuals must be held accountable. They’ve turned public procurement into a personal marketplace,” said another frustrated bidder. “Kenyans are the ones suffering as local companies are squeezed out of opportunities they’re qualified for.”
Unless urgent action is taken, the Kenya Pipeline saga could serve as yet another example of systemic failure in public procurement and a damning indictment of how state institutions continue to betray the trust of the Kenyan people.
