Public Procurement Regulatory Authority Director General Patrick Wanjuki during a past event/FILEThe Public Procurement Regulatory Authority (PPRA) has launched a comprehensive performance audit of 32 contracts awarded by the Kenya Development Corporation (KDC), following complaints from concerned citizens alleging widespread procurement irregularities.
In a formal communication dated November 10, 2025, PPRA Director General Patrick Wanjuki notified KDC Director General Norah Ratemo of the decision to institute a performance and compliance audit covering multimillion-shilling tenders and numerous Local Purchase Orders (LPOs).
The directive follows earlier correspondence between the two institutions and a letter dated September 25, 2025, that detailed allegations of misprocurement.
The contested procurements span major service and infrastructure contracts, including medical and general insurance covers, security services, media services, satisfaction surveys, ICT upgrades, building refurbishments, furniture works, and the overhaul of wet areas at Utalii House.
The values of the questioned tenders range from Sh1.5 million to nearly Sh80 million, with the total contracts amounting to several hundred million shillings.
Among the largest projects flagged for review are the Sh79.7 million modernisation of wet areas at Utalii House, Sh63.7 million for elevator works at Finance House, Sh33.2 million for CCTV installation at Utalii House, and Sh28.7 million for completion of fit-out works at Uchumi House.
Other significant capital works include new furniture for KDC offices, external painting at Uchumi House, and fencing at the KNTB plot (Hilton).
Service-related contracts are also under scrutiny, including medical insurance for staff and directors at Sh34.7 million per annum, general insurance services at Sh12.9 million and security services for KDC premises at Sh13.4 million.
A stakeholder satisfaction survey valued at Sh2.98 million, and event management contracts such as Sh6.05 million for the Western Region International Conference and Sh5.9 million for the Next Frontier Africa initiative are also part of it.
“In view of the above and pursuant to the provisions of Section 43 (1) of the Public Procurement and Asset Disposal Act, 2015, the Authority has instituted a performance audit of the above contracts," the letter reads.
In the letter, PPRA invoked Section 43(1) of the Public Procurement and Asset Disposal Act, 2015, granting the Authority power to conduct contract performance audits where irregularities are suspected.
“You are required to ensure that all the contracts plus relevant supporting documents for each contract have been uploaded in the Public Procurement Information Portal,” the DG wrote.
KDC has been directed to upload all relevant procurement and contract documents to the Public Procurement Information Portal (PPIP) no later than today, November 17, 2025.
The documentation to be supplied is extensive, covering procurement plans, requisitions, tender notices, bid opening and evaluation records, professional opinions, award letters, and acceptance letters.
Also needed are signed contracts, performance securities, implementation minutes, site handover documents, payment certificates, capacity-building levy records, and the professional qualifications of involved supply-chain personnel.
PPRA further noted that its compliance officers may visit KDC offices to inspect original records and conduct interviews as needed.
The Authority reminded KDC that compliance officers are empowered under Section 43(3-7) of the Act to peruse, inspect, and retrieve documents relevant to the audit.
The letter also underscored the legal responsibility of the KDC Accounting Officer, as outlined in Section 44(1) of the Act, to ensure full compliance with procurement laws and to provide the Authority with all required records.
“Consequently, we look forward to your full support and cooperation from your procuring entity,” DG Wanjuki wrote, adding that compliance with the audit process is not optional but a legal requirement.
The audit notice has been copied to the Ethics and Anti-Corruption Commission (EACC), signalling the possibility of further investigations should breaches of procurement law be confirmed.
PPRA said it expects KDC’s “full support and cooperation” as the exercise progresses, noting that the audit aims to establish whether due process was followed in the award and implementation of the listed contracts.
The development comes amid heightened scrutiny of procurement operations across government agencies as part of a wider effort to seal loopholes and curb corruption.
