Court Freezes Kiambu’s Ksh230 Million Tender Over Fake Audits and Forged Bank Records

The Anti-Corruption Court has halted the payment of Ksh166 million to a private firm after the Ethics and Anti-Corruption Commission (EACC) exposed major irregularities and forged documents in a Ksh230 million tender awarded by the Kiambu County Government.

Justice Lucy Njuguna issued the temporary orders barring further payments for 14 days, pending a full hearing on November 13, 2025.

According to the EACC report, the tender was for the development, installation, testing, training, commissioning, and support of an Enterprise Resource and Planning (ERP) system. The tender, advertised on March 30, 2023, was allegedly won using fake audited financial statements and falsified bank records.

Investigations revealed that the company submitted financial statements for 2020, 2021, and 2022, claiming they were audited by a legitimate firm. However, the supposed auditors later confirmed they never reviewed or approved those statements.

Furthermore, the EACC discovered that the bank statements submitted by the firm were manipulated to show a positive cash flow, when in fact, the company’s financial position was weak.

The bid also included fake employee CVs, with the EACC confirming that the two individuals listed were not employees of the company.

The county and the company had signed the contract on April 24, 2023, with work expected to begin within two weeks. However, by December 2023, the company sought a 52-week extension, citing technical issues—an extension that was illegally approved on February 24, 2024, by the Chief Officer of Revenue, Supply Chain Management, ICT, and Internal Audit.

EACC noted that the extension violated Section 139(2A) of the Public Procurement and Asset Disposal Act, as the contract had already expired and was not legally extendable.

So far, the firm has already received Ksh63 million, prompting the EACC to file a petition on October 28, 2025, seeking to recover the funds and permanently bar further payments to the company.

The Kiambu County Government has not yet issued an official statement regarding the case.