KWS Boss Dr Erustus Kanga Under Radar Over Alleged Sh740M Staff Insurance Tender Scam

Procurement watchdog nullifies controversial award to Britam as irregularities emerge in evaluation process

Kenya Wildlife Service (KWS) Director General Dr. Erustus Kanga faces mounting scrutiny following a damning ruling by the Public Procurement Administrative Review Board (PPARB) that exposed serious irregularities in the awarding of a Sh740 million staff insurance tender.

The procurement watchdog has ordered KWS to conduct a fresh evaluation of the controversial three-year health insurance contract after nullifying the initial award to Britam General Insurance Company (K) Limited, citing violations of procurement laws and unfair treatment of other bidders.

Forgery and Foul Play Exposed

At the heart of the scandal lies a sophisticated forgery scheme that saw Jubilee Health Insurance Ltd wrongfully disqualified from the tender process.

PPARB’s investigation revealed that KWS evaluation committee members fell for a fabricated authorization letter purportedly from Jubilee, which was used to falsely implicate the company in submitting multiple bids through intermediaries.

The forged document, allegedly issued by Jubilee on April 8, 2025, contained glaring anomalies including incorrect director names and a fictitious physical address.

When Jubilee requested a copy of the supposed letter, company officials immediately identified it as fraudulent and denied any involvement in its creation.

“The letter was a forgery perpetrated without Jubilee’s knowledge or consent,” the company stated in its defense, highlighting the sophisticated nature of the deception that initially fooled KWS evaluators.

Price Inflation Under the Radar

Adding to the controversy, PPARB discovered that while Britam emerged as the lowest bidder with a quotation of Sh710 million, the final letter of award mysteriously inflated the contract value to Sh740 million – an unexplained increase of Sh30 million that has raised questions about transparency in the process.

More troubling still, KWS proceeded to issue a letter of intent to Britam at the higher Sh740 million price despite the tender proceedings being officially suspended on April 28, 2025, following Jubilee’s complaint about the forgery.

Due Process Violations

PPARB, chaired by lawyer George Murugu and including members Alice Oeri and Alexander Musau, found that KWS had fundamentally breached procurement procedures by failing to afford Jubilee a fair hearing before disqualification.

“Before arriving at any adverse decision, it is important to give the affected party a fair opportunity to respond to the said allegations. Failure to accord a hearing amounts to a breach of their right to be heard, a key tenet of fair administrative action under Article 47 of the Constitution and the Fair Administrative Action Act,” the board stated in its May 19, 2025 ruling.

The board emphasized that KWS was obligated to seek clarification from Jubilee, especially given the serious consequences of disqualification from such a substantial tender.

Eight Bidders, One Winner

The tender, advertised early this year for comprehensive group medical insurance cover for KWS board of trustees and staff for the period 2025-2028, had attracted significant interest from eight major health insurers: Jubilee, Britam, CIC General Insurance, Old Mutual, Star Discover, APA Insurance, AAR Insurance, and Liaison Group Insurance Brokers.

The competitive nature of the tender and the substantial value involved make the procedural violations all the more concerning, particularly given KWS’s role as a key state corporation responsible for wildlife conservation.

Leadership Under Pressure

Dr. Erustus Kanga, who has served as KWS Director General with over 20 years of experience in biodiversity conservation, now faces questions about the procurement processes under his leadership. The seasoned conservationist, who previously held the position of Secretary for Wildlife at the Ministry of Tourism, Wildlife & Heritage, has built a reputation around transparency and good governance in wildlife management.

The insurance tender scandal represents a significant test of Dr. Kanga’s leadership at a time when KWS is grappling with various challenges including funding constraints, human-wildlife conflict, and the need for sustainable conservation financing.

Road to Resolution

PPARB has given KWS 45 days to conduct a fresh, transparent evaluation of all submitted bids, effectively giving Jubilee and other bidders a second chance to compete fairly for the lucrative contract.

The board’s decision serves as a stern reminder to all public entities about the importance of adhering to procurement laws and ensuring fair treatment of all bidders regardless of their market position or perceived advantages.

For KWS, an organization that prides itself on conservation excellence and ethical practices, the tender controversy presents an opportunity to demonstrate that the same high standards applied to wildlife protection also govern its internal operations and procurement processes.

As the re-evaluation process begins, all eyes will be on Dr. Kanga and his team to ensure that the second attempt at awarding this crucial insurance contract meets the highest standards of transparency, fairness, and legal compliance that Kenyan taxpayers deserve.

The scandal also highlights the ongoing challenges in Kenya’s public procurement system, where despite robust legal frameworks, implementation gaps continue to create opportunities for irregularities that undermine public trust in government institutions.

This story is developing and will be updated as more information becomes available.