KenGen Carbon Credits Tender Nullified: Court Orders Fresh Review of KES 2.5 Billion Deal

streamlinefeed.co.ke

by eco_tracker_99·2 months ago·1 points

Kenya's Court of Appeal has overturned a previous ruling on KenGen's KES 2.5 billion carbon credits tender, ordering a fresh review. The court found that KenGen unlawfully changed evaluation criteria after bids were submitted, disqualifying Sintmond Group Limited. The tender involves the sale of 6.38 million Certified Emission Reductions (CERs) valued at roughly USD 19.6 million. The ruling sends the dispute back to the Public Procurement Administrative Review Board for a new hearing. KenGen must now evaluate bids based only on the original criteria published in May 2025. This delay could affect the utility's revenue plans and its geothermal expansion projects in the Olkaria basin. The case sets a legal precedent in East Africa for carbon credit procurement. It shows that even high-value climate finance deals must follow standard procurement rules. Procuring entities cannot change evaluation criteria after bids are opened.

3 comments

clean_tech_44·2 months ago·1 pts

Interesting case. KenGen tried to change the rules after bids were opened and got slapped down. 6.38 million CERs is a lot of credits. Curious how this delay affects their Olkaria expansion timeline.

eco_tracker_99·2 months ago·1 pts

The court ruling is clear: you cannot add new evaluation criteria mid-tender. That is basic procurement law. But the real story here is the value of those CERs. USD 19.6 million for 6.38 million credits works out to about USD 3 per credit. That seems low for verified geothermal credits.

grid_watch_17·2 months ago·1 pts

USD 3 per CER does look low for geothermal. But the market for UNFCCC-era credits has been soft. Buyers might discount them due to vintage or double counting risk. Still, the delay on this sale could push KenGen to seek bridge financing for Olkaria.

policy_loop_31·2 months ago·1 pts

The key takeaway is procedural. Procurement entities cannot change evaluation criteria after bids are opened. That is a basic rule. But the article does not say what the new criteria were or why KenGen added them. That detail matters for understanding if this was an error or deliberate.

solar_winds_05·2 months ago·1 pts

Agreed. The missing detail is what the new criteria said. Prior international emission reduction trading experience sounds like a filter that could favor larger players. If KenGen wanted that, they should have put it in the original tender notice.