Stabex International has secured a lucrative diesel supply contract from Kenya Power after emerging as the lowest bidder in a competitive tender process valued at Sh458 million.
The procurement exercise attracted major industry players, including Rubis Energy, which submitted a bid of Sh542 million, and Galana Energies, which offered Sh603 million.
According to the outcome of the tender, Stabex International was awarded the contract based on its more competitive pricing, which positioned it ahead of its rivals in the evaluation process. The award was further solidified after Rubis Energy’s challenge to the procurement process was dismissed, clearing the way for finalization of the deal.
The contract highlights the significant role of cost competitiveness in public procurement, particularly in large-scale energy supply agreements where pricing remains a key determining factor.
The deal is expected to strengthen Stabex International’s position in Kenya’s energy supply sector while ensuring Kenya Power secures fuel at more favorable rates amid ongoing efforts to manage operational costs.
