Korean Firm Wins Nod for Sh7.6bn Outer Ring BRT Job

Nairobi’s Sh7.6 billion Bus Rapid Transit (BRT) project along Outer Ring Road has received a green light to proceed after the Public Procurement Administrative Review Board (PPARB) rejected a challenge blocking the hiring of a Korean contractor.

Funded by Korea’s Export-Import Bank (Kexim), the Kenya Urban Roads Authority (KURA)-led project aims to ease traffic and upgrade Nairobi’s public transport.

The project involves building a 10.5 km, two-lane BRT road, three bridges over rivers, two overpass bridges, 13 stations, new footbridges, and fixing up existing roads and structures.

It also includes adding street lights, planting trees and grass, improving drainage, and doing electrical and mechanical work. KURA expects the project to finish in two years.

The litigation originated from CK Solution Co Ltd, part of a joint venture that included Kumkang Construction and Beyond Trading.

CK Solution claimed its tender documents were rejected and sought administrative directions compelling KURA to admit its bid into evaluation.

Their bid was initially refused on the grounds of nationality: KURA received only one bid from Youngjin JV Ltd, a wholly Korean-led consortium. 

CK Solution accused the authority of limiting procurement to Korean firms, arguing that the requirement breached Article 227 of the Constitution, which mandates public procurement systems that are “fair, equitable, transparent, competitive and cost-effective”.

RELATED: Nairobi’s Sh7.3bn BRT Line to Revamp Outer Ring Road

In its ruling, however, the PPARB found it lacked jurisdiction to intervene. The board stressed that the loan and tender agreements clearly stipulated the application of Korean law and the dispute resolution mechanism had to follow donor guidelines. As the board explained:

“The clauses, when read together with the relevant provisions of the loan agreement, establish a clear procedural framework for dispute resolution. Consequently, the board is satisfied that the agreement provides a binding dispute resolution mechanism… thereby excluding the application of the Public Procurement and Asset Disposal Act.”

In addition, KURA stated that Kexim Bank had already flagged CK Solution’s tender as “substantially non-responsive” following its email of 26 May 2025, a judgement that KURA’s legal team claimed was binding under the loan and tender framework.

CK Solution and partners also noted irregularities such as confusion over tender submission venues—ground floor, fourth floor, and meeting rooms—and a prohibitive Sh50,000 fee for an electronic copy of the tender documents. They argued that procurement laws forbid such a fee, labelling it “unjust enrichment” and a barrier to participation.

KURA defended the fee, saying that all bidders paid it, while disclosing that the company bypassed them to approach Kexim directly, suggesting “forum shopping”.

Moreover, CK Solution did not submit its bid to KURA, a mandatory step in the process.

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