Kenya's Court of Appeal has ordered a fresh review of KenGen's KSh2.5 billion carbon credits tender, ruling that the power company cannot introduce new evaluation criteria after bids are submitted. The case involves the sale of 6.38 million Certified Emission Reductions (CERs) from KenGen's geothermal, hydro, and wind projects. The court said due diligence must stick to the rules disclosed in the original tender documents, not add new requirements later. The ruling overturns earlier decisions that favored KenGen and sends the dispute back to the Public Procurement Administrative Review Board for a new hearing. This delays the planned sale of carbon credits from one of Africa's largest renewable energy producers. The decision sets a precedent for public procurement in carbon markets, especially as Kenya looks to scale up its participation in international carbon trading. The case highlights the tension between fast growing climate finance and the need for transparent procurement processes.
