How Trade Agency “Cooked Up” Plan to Dish Out Rice Tender

Nairobi, Kenya — September 23, 2025, 14:00 EAT.

The KNTC faces scrutiny after reports that a rice importation tender valued at 250,000 metric tonnes was handled under questionable procedures. Allegations suggest the tender was abruptly revoked, with preferred suppliers possibly given an unfair advantage.

The Latest

• The Kenya National Trading Corporation (KNTC) originally issued a tender for duty-free importation of 250,000 metric tonnes of rice. This tender was later revoked shortly after being awarded to 16 successful bidders. 

• Sources say KNTC informed selected suppliers via phone calls before the formal announcement, raising concerns over transparency. 

• The Parliamentary Committee on Trade, Industry and Cooperatives is probing the matter. The committee previously inspected rice shipments at KNTC warehouses in Mombasa (April 2023) as part of its oversight role. 

Context in Brief

• KNTC is a state corporation mandated to import and distribute essential commodities, including rice, under certain government frameworks.

• Kenya has in recent years used duty-free import tenders to stabilize food prices and ensure availability, especially for staples like rice.

• Previous similar tenders have faced delays, disputes, and legal challenges, often centering on whether procedures comply with procurement law and whether allocations are fair.

Key Issues and Allegations

• Abrupt Revocation: After selecting 16 bidders, KNTC withdrew the tender without clear public justification. Critics argue this may have been done to favour some parties. 

• Pre-announcement “Inside Communication”: Selected bidders were reportedly informed ahead of formal awarding via phone. This suggests possible breaches of procurement fairness and transparency. 

• Legal & Procedural Compliance: Allegations include that proper bidding, notification, and documentation protocols under the Public Procurement Act and relevant regulations may not have been followed.

Law, Policy, and Process

• Public Procurement & Asset Disposal Act: Requires that tenders be issued, evaluated, and awarded in a fair, transparent, and contestable manner. Any premature communications with bidders or revocations require valid reasons and must follow law.

• KNTC’s Mandate & Procurement Guidelines: The KNTC is expected to follow national procurement standards, especially for essential commodities that affect food security and prices.

• Oversight & Accountability: Parliamentary committees and PPRA (Public Procurement Regulatory Authority) have oversight powers to investigate and demand explanations or corrections in procurement processes.

Voices and Stakeholders

• Opposition / Civil Society: Are demanding that KNTC release full details: how bidders were selected, why the revocation occurred, and assurance that the process was not manipulated.

• KNTC / Trade Agency (as yet): According to reports, KNTC has not publicly given a full explanation for the revocation or the informal communications. (If a statement is later released, it will need to be recorded.)

• Parliamentary Committee on Trade, Industry & Cooperatives: Has begun probing the issue. The committee may call in KNTC officials, bidders, or procurement officers for explanations.

Evidence & Data Box

What We Don’t Know Yet

• What was the official reason KNTC revoked the tender: was it due to price concerns, contractor capacity, compliance issues, or other legal/financial risk?

• Which 16 bidders were selected and whether they had any previous ties with KNTC or insiders—raising conflict of interest implications.

• What the timeline is for re-issuing the tender or awarding it to other parties.

• Whether procurement oversight bodies (PPRA, Auditor General’s Office, parliamentary committees) will recommend sanctions or reforms.

Risks, Implications & Scenarios

• Food Security & Price Volatility: Delays or cancellation of large rice import tenders could disrupt supply, raising prices for consumers, especially in low-income households.

• Integrity of Procurement Institutions: If irregularities are confirmed, public trust in state procurement and essential commodity supply chains may erode.

• Legal/Reputational Risk: KNTC may face legal challenges from aggrieved bidders or claims for compensation. Also, reputational damage could affect future partner confidence (local & international).

• Policy Reforms: This may lead to calls for stricter procurement oversight, more transparency (e.g., publicizing evaluation criteria, process, communications), and tighter enforcement of procurement laws.

Timeline

• April 5, 2023: Parliamentary Committee visits KNTC warehouses in Mombasa as part of oversight of rice shipments. 

• June / Mid-2025: KNTC issues tender for importation of rice (250,000 metric tonnes).

• Shortly after award to 16 bidders: Tender is revoked. Informal communications reportedly sent via phone to bidders. 

• September 2025: Media reports exposing details of the tender, prompting parliamentary scrutiny.

What to Watch

• Formal statements from KNTC management explaining the revocation and selection process.

• Any bidder complaints being filed with PPRA or the courts.

• Parliamentary committee report recommendations: whether they call for process reforms or sanctions.

• Impact on domestic rice prices and supply following the tender’s revocation or re-award.

Editor’s Note: This article relies on reporting by The Standard (“How trade agency cooked up plan to dish out rice importation tender”) and summaries from related outlets. Full details are pending due to paywall restrictions.

Corrections / Updates: Will be added if KNTC or oversight bodies publish official responses or new documents.