Kenya Medical Supplies Authority (Kemsa) rejected a lower price for the Personal Protective Equipment (PPEs), MPs heard on Thursday.
The deal could have seen the taxpayer save at least Sh1.65 billion.
According to the director of Northlink GSC Ltd, Ahmed Takoy, the government agency rejected his Sh4,500 offer and instead asked him to review his prices upwards to Sh9,000.
Mr Takoy told the Public Investment Committee (PIC) that is led by Mvita MP Abdulswamad Nassir that he had ready PPEs over in China back in April.
“I told them that was my price and I was not willing to change,” he said, adding, “I believe in clean business. Many people approached me to do some things but I rejected their offers.”
Mr Takoy also told the legislators that he wrote to Kemsa on April 14, 2020 indicating that he was willing to supply 3-surgical masks at Sh90 each, N95 at 900 and PPEs at Sh4,590.
MPs sought to find out if his goods were of high quality to which he said he didn’t understand why other suppliers were selling them at double the price.
Mr Takoy who had never worked with the agency before did however bag a Sh130 million tender to supply 1.5 million pieces of surgical face mask disposal 3 ply ear-loop.
Northlink GSC Ltd was registered in 2008 and has two directors, he told the parliamentary committee.
In October, Auditor General Nancy Gathungu tabled a report showing that Kemsa rejected an offer from Ms Gladlab Supplies Ltd to supply face masks at Sh3,183.
Kemsa then chose to go for suppliers selling the same merchandise at Sh4,500.
Suspended Kemsa CEO Jonah Manjari is said to have ignored suppliers selling goods at discounted prices.
Also on the spot yesterday was Meraky Healthcare which won a Sh140 million tender without the proper documentation.
Its director, Wairimu Mbogo had a hard time explaining how the firm bagged the lucrative business.
The Nassir-led committee will in coming days summon suppliers whose lower bids were rejected.