Safaricom security deal to require Treasury nod

Barclays Bank of Kenya MD Jeremy Awori with Safaricom’s Enterprise Business Unit GM Sylvia Mulinge when the two institutions unveiled a mobile banking service at the Serena Hotel August 1, 2013. The service will enable corporate clients to disburse bulk payments such as salaries, dividend payments, per diem allowances and pension payments to various beneficiaries through the mobile phone. Photo/DIANA NGILA  Nation Media Group

 

By EDWIN MUTAI

In Summary

• Rotich said the law requires the Public Procurement Authority, which is under his docket, to be notified of any tender award exceeding Sh5 million once the bidder is notified of the award.
• Mr Rotich put the total estimated cost of the project at Sh18.8 billion, including Value Added Tax and Excise Duty charges.

The Treasury will assess the proposed Sh14.9 billion security tender to be awarded to Safaricom before signing the final contract, Treasury secretary Henry Rotich has said.

 

Mr Rotich told a parliamentary committee Tuesday that the law requires the Public Procurement Authority, which is under his docket, to be notified of any tender award exceeding Sh5 million once the bidder is notified of the award.

“We shall have 14 days to conduct due diligence on the award of the project and we shall decide whether or not the contract will be signed,” Mr Rotich told the Administration and National Security Committee chaired by Tiaty MP Asman Kamama.

Mr Rotich put the total estimated cost of the project at Sh18.8 billion, including Value Added Tax and Excise Duty charges.

“The actual cost of the project is Sh14.9 billion. The Communications Authority of Kenya and the ICT ministry have allocated security frequencies to Safaricom at a cost of Sh6.7 billion and once this is netted off, the net project cost will be Sh12 billion.

READ: Taxpayers to fork out Sh22bn for national security network

“We will provide funding in four instalments amounting to Sh3 billion annually from the 2015/16 financial year. This is after a grace period of one year,” he said.
Safaricom has indicated that it is willing to extend the project payment period to seven years.