Wednesday, June 1, 2022, marked a significant day in the ongoing dispute between Kenya Power and local firms over a Sh2 billion meters tender.
Kenya Power has argued that it restricted the tender to reduce meter failures in single-phase and three-phase prepaid meters, which have been a major concern for the company.
According to court documents, the power utility firm stated that the high failure rate of meters supplied by local assemblers, as well as its internal policy on sourcing the best value for suppliers, informed its decision to bring on board international suppliers and expand specifications criteria.
Kenya Power added that associated costs for meter failures over the last three years have been substantial, with the company replacing defective meters and incurring additional costs that have dented its image and reduced customer satisfaction levels.
Local manufacturers have argued that the conditions placed by Kenya Power were to edge out local manufacturers and assemblers who have been supplying the company with meters since 2015.
However, Kenya Power's lawyer, Irene Walala, maintained that tier-one companies, mostly foreign firms, are generally the largest or most technically capable companies in the supply chain, with the skills and resources to supply critical components and manage suppliers effectively.
