Source: The Standard (Kenya), January 28, 2026, by Fred Kagonye Original Title: Sh30 billion Nairobi Railway tender award cancelled (Note: Sh29bn and Sh30bn represent the same project with minor rounding differences) Full Text Kenya's Public Procurement Administrative Review Board (PPARB) has cancelled the award of a Sh30 billion Nairobi Railway City Central Station tender to China Road and Bridge Corporation (CRBC), citing a critical flash disk mix-up that violated procurement rules. The decision followed an appeal filed by a losing bidder, China Civil Engineering Construction Corporation (CCECC), which challenged CRBC's selection by Kenya Railways Corporation (KRC). CCECC was represented by lawyer Maloba Kamau, who argued that CRBC failed to meet mandatory tender requirements, including proper submission of electronic documents. The Flash Disk Fiasco At the heart of the dispute was CRBC's handling of its bid submission, specifically regarding flash disks containing financial proposal documents. According to tender documents, bidders were required to: Submit separate physical and electronic copies of technical and financial proposals Ensure electronic copies were properly labeled and secured to prevent premature disclosure of financial information Provide a bid bond of Sh500 million Kamau told the review board that CRBC: Failed to submit an electronic copy of its financial proposal as explicitly required Submitted labeled flash disks that potentially exposed evaluators to financial information at an improper stage of the evaluation process This constituted a fundamental breach of procurement procedures designed to maintain fairness and transparency Board's Ruling The PPARB ruled in favor of CCECC, stating that CRBC's non-compliance with the electronic submission requirements was material and could not be overlooked. The board emphasized that proper handling of electronic bid documents was critical to ensuring: Confidentiality of financial information during the technical evaluation stage Equal treatment of all bidders Integrity of the procurement process KRC had initially awarded the tender to CRBC in December 2025, citing the Chinese firm's extensive experience in railway projects, including Kenya's Standard Gauge Railway (SGR) from Mombasa to Nairobi. However, the review board found that this experience did not justify waiving mandatory tender requirements. Project Details The Nairobi Railway City Central Station project is part of the larger Sh27.9 billion Nairobi Railway City development, which aims to transform the existing railway station area into a modern transport hub and business center. The project includes: A new central railway station with improved passenger facilities Public realm and associated infrastructure works Business complex with two 5,000-square-meter buildings Railway infrastructure improvements costing Sh17.5 billion Implications The cancellation means KRC will have to restart the tender process, potentially delaying the project by several months. This is not the first time CRBC has faced procurement challenges in Kenya; in 2020, a Kenyan appellate court ruled that the original SGR contract between KRC and CRBC was illegal due to lack of proper competitive bidding. CCECC, the successful appellant, has expressed readiness to participate in the re-tendered process, stating they have the technical capacity and financial resources to deliver the project on time and within budget. The PPARB decision serves as a reminder to all bidders, both local and international, of the importance of strict compliance with Kenya's public procurement regulations, even for minor details like flash disk labeling and submission proceduresppra.go.ke.
