An investigation into Kenya’s controversial procurement practices reveals a web of political connections and questionable contract awards
Kenya’s state electricity monopoly, Kenya Power and Lighting Company (KPLC), has become the latest battleground in a growing controversy over alleged cronyism and state capture under President William Ruto’s administration. At the center of the storm is healthcare magnate Jayesh Saini, whose company secured a lucrative Sh113 million ($875,000) contract despite having no apparent expertise in electrical infrastructure.
This investigation reveals a pattern of procurement practices that critics say undermines fair competition and raises serious questions about governance and transparency in Kenya’s public sector.
The Deal That Raised Eyebrows
Kreative Concrete Products, a company 50% owned by Jayesh Saini, was awarded a Sh113 million contract to supply equipment to KPLC. The other half of the company is owned by Faryd Abdulrazak Sheikh, another close associate of President Ruto. The contract forms part of what appears to be a broader pattern of state resources flowing to individuals with close ties to the president.
The timing and circumstances of the contract award have drawn scrutiny from governance experts and opposition politicians. Saini, primarily known for his healthcare ventures, has no documented experience in electrical equipment supply or infrastructure development, raising questions about how his company qualified for such a substantial contract.
“This is a classic case of jobs for the boys,” said a senior procurement expert who requested anonymity. “When you see companies with no track record in a sector suddenly winning major contracts, it raises red flags about the integrity of the process.”
The Healthcare Magnate’s Political Web
Saini’s connections to Kenya’s political elite run deep. Through proxy arrangements, he is linked to two UAE-registered companies, Medical Administrators (MAKL) and Bliss Healthcare, which were involved in running a controversial health insurance program for teachers. The program drew significant criticism for transparency issues and allegations of mismanagement, with teachers complaining about inadequate services despite substantial government funding.
The businessman’s political connections extend beyond business partnerships. His associate Sheikh’s proximity to President Ruto was publicly demonstrated when then-Defence Minister Aden Duale attended Sheikh’s son’s wedding in 2024. Such personal relationships between business figures and government officials have become a hallmark of what critics describe as a system of cronyism.
Previous investigations have revealed that Saini controls more than 30 registered companies through various proxy arrangements, positioning him to secure multiple government tenders across different sectors. This extensive corporate network has enabled him to diversify his government contract portfolio beyond his core healthcare expertise.
A Pattern of Favoritism
The KPLC contracts reveal a troubling pattern. Alongside Saini’s company, another Ruto-connected firm, Rai Cement, secured an 18 million shilling contract for similar equipment supply. Rai Cement, owned by the Sarrai Group’s Sarbjit Rai and his sons Rajbir and Amaanraj Rai, had President Ruto as the guest of honor at Rajbir Rai’s wedding in 2016.
Even more concerning, Rai Cement had previously received a contract worth 118 million shillings in mid-2024, indicating repeat awards to the same politically connected firms. The pattern is clear: companies with close ties to the president are securing multiple, high-value contracts from state entities.
Additional contracts in the same KPLC procurement round went to World Poles, which received 202 million shillings ($1.56 million). While the ownership structure of World Poles remains unclear, the concentration of such large contracts among a small group of companies raises questions about competitive bidding processes.
Governance Implications
The awarding of these contracts appears to contradict Kenya’s Public Procurement and Asset Disposal Act of 2015, which mandates competitive bidding and fairness in state contract allocation. Legal experts argue that the dominance of politically connected firms in recent KPLC awards suggests systematic deviation from these principles.
“When you have a pattern where the same individuals or their associates keep winning state contracts across different sectors, it suggests the system is being gamed,” explained Dr. Sarah Kiprotich, a governance specialist at the University of Nairobi. “This undermines the very foundation of fair competition and public trust in government institutions.”
The concentration of state resources in the hands of a few well-connected individuals has broader implications for Kenya’s economy. It not only limits opportunities for other businesses but also risks creating a system where political connections matter more than competence or competitive pricing.
For ordinary Kenyans who depend on KPLC for electricity services, the potential consequences include inflated costs, substandard equipment, and service disruptions. When contracts are awarded based on political relationships rather than merit, the quality and efficiency of public services inevitably suffer.
The Wider Context
The KPLC contracts are part of a broader pattern of questionable procurement practices that have characterized Ruto’s presidency. Critics argue that despite campaign promises to tackle corruption and promote transparency, the administration has instead institutionalized a system of patronage that benefits a small circle of allies.
The involvement of UAE-registered companies in Kenya’s procurement processes also raises questions about regulatory oversight and tax compliance. These offshore arrangements can make it difficult for authorities to track beneficial ownership and ensure proper tax collection.
Opposition politicians have called for parliamentary investigations into the KPLC contracts, arguing that they represent a clear case of state capture. However, with Ruto’s party controlling parliament, the likelihood of meaningful oversight remains uncertain.
What’s at Stake
Kenya’s reputation as a destination for foreign investment and a leader in regional governance is at risk if current procurement practices continue unchecked. International partners and development agencies have increasingly expressed concern about transparency in government dealings.
The International Monetary Fund and World Bank have made governance improvements a condition for continued financial support to Kenya. Continued evidence of cronyism and state capture could jeopardize these crucial partnerships at a time when Kenya faces significant economic challenges.
For Kenyan citizens, the stakes are even higher. State resources diverted to politically connected individuals represent lost opportunities for development, infrastructure improvement, and public service delivery. Every shilling that goes to an unqualified contractor is a shilling not spent on improving schools, hospitals, or essential services.
The Path Forward
Reform advocates argue that Kenya needs stronger institutional safeguards to prevent the abuse of procurement processes. Recommendations include:
- Independent oversight of major government contracts
- Public disclosure of beneficial ownership for all companies bidding for state contracts
- Mandatory cooling-off periods for former government officials entering business
- Regular audits of procurement processes by independent bodies
- Whistleblower protection for those who expose procurement irregularities
The Ethics and Anti-Corruption Commission (EACC) has the mandate to investigate such cases, but critics argue that the agency lacks the independence and resources to effectively challenge powerful political networks.
Conclusion
The Sh113 million KPLC contract awarded to Jayesh Saini’s company represents more than just a questionable business deal. It symbolizes a system where political connections have become the primary currency for accessing state resources. While Saini’s business acumen in the healthcare sector is undeniable, his foray into electrical equipment supply through politically connected partnerships raises serious questions about the integrity of Kenya’s procurement processes.
As Kenya grapples with economic challenges and development needs, the country can ill afford a system where merit takes a backseat to political favoritism. The KPLC contracts serve as a stark reminder that without fundamental reforms to strengthen transparency and accountability, state capture will continue to undermine Kenya’s democratic institutions and economic potential.
The question now is whether Kenya’s institutions have the will and capacity to address these systemic problems, or whether the culture of cronyism will continue to define how state resources are allocated. For ordinary Kenyans watching their tax money flow to politically connected individuals, the answer will determine not just the quality of their electricity supply, but the very nature of governance in their country.
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