KDC Plunged Into Crisis as DG Norah Buyaki Ratemo Named in Sh500 Million Tender Scam

The Kenya Development Corporation (KDC) Director General Norah Buyaki Ratemo has been thrust into the spotlight after the state corporation was rocked by a massive procurement scandal involving tenders worth more than Sh500 million.

The Public Procurement Regulatory Authority (PPRA) has launched a sweeping audit into nearly fifty tenders flagged for irregularities, amid allegations of systemic procurement fraud, inflated costs, and possible collusion between KDC officials and politically connected contractors.

According to correspondence seen by this scribe, PPRA Director General Patrick Wanjuki has written twice to DG Ratemo demanding immediate disclosure of evaluation reports, tender awards, and full contract documentation for the suspicious procurements. Investigators believe several contracts may have bypassed mandatory competitive bidding processes.

The watchdog’s intervention follows a detailed whistleblower report alleging an intricate web of tender manipulation at KDC, which is already struggling under a Sh33.44 billion bad debt crisis that threatens its operations.

In a letter dated November 10, PPRA warned that its officers are now authorized to descend on KDC’s Uchumi House headquarters and seize documents that may aid the investigation. The letter, which has also been copied to the Ethics and Anti-Corruption Commission (EACC), signals that the matter has escalated into possible criminal violations.

Documents obtained by the publication indicate that KDC failed to publish key multi-million shilling contracts on the Public Procurement Information Portal, contrary to requirements under the Public Procurement and Asset Disposal Act. The secrecy around these tenders has raised red flags about potential fraud and conflicts of interest that may have cost taxpayers hundreds of millions.

Among the contracts under scrutiny are a Sh35 million medical insurance tender for KDC directors and staff, a Sh64 million lift installation contract at Finance House, and a Sh33 million CCTV installation deal at Utalii House. Other flagged procurements include a Sh26.4 million wet-area overhaul proposal at Utalii House and Sh13 million allocated to general insurance.

Internal documents reportedly show glaring discrepancies between approved budgets and the actual amounts paid to certain suppliers, pointing to possible collusion between procurement officers and well-connected contractors.

Sources familiar with the probe claim several tenders were processed through restricted methods without proper justification, allegedly to avoid open competitive bidding.