Funds pledge for groups eyeing State contracts

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President Uhuru Kenyatta is conducted on a tour during the opening of the Women and Youth Procurement Expo at the KICC in Nairobi on October 16, 2013. The government will facilitate financing of local purchase or service orders for enterprises owned by youth. The procuring entities will be required to facilitate the financing of enterprises owned by the youth or persons with disability. PHOTO/FILE 

In Summary

• According to the Public Procurement oversight authority amendments published in local newspapers, the procuring entities will be required to facilitate the financing of enterprises owned by the youth or persons with disability.
• The government published amended these regulations for public procurement opportunities for small and medium enterprises and other disadvantaged groups.

By Nation Correspondent
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The government will facilitate financing of local purchase or service orders for enterprises owned by youth.

According to the Public Procurement oversight authority amendments published in local newspapers, the procuring entities will be required to facilitate the financing of enterprises owned by the youth or persons with disability.

This, the notice reads, will be done by authenticating their notifications of tender awards, local purchase/service orders and subsequently entering into an agreement with the relevant financing institution with conditions.

Some of the conditions include paying the contracted enterprise through an account opened with the financier.

“All public entities shall give exclusive preference to citizen contractors for procurements below shillings one billion for road works, Sh500 million for other works, Sh100 million for goods and Sh50 million for services,” reads the statement in part.

The amendments also state that procuring entities are required to allocate 30 per cent of their procurement spend for the purpose of procuring goods, ICT equipment, software, works and services from micro and small enterprises owned by youth, women and persons with disabilities.

The government published amended these regulations for public procurement opportunities for small and medium enterprises and other disadvantaged groups.

“…for the purpose of re-aligning the regulations with its envisaged policies,” reads the notice in part.

For the purpose of ensuring sustainable promotion of local industry, procuring entities are expected to indicate in all their tender documents a mandatory requirement as an initial evaluation criterion for all foreign tenders participating in international tenders to source at least 40 per cent of their supplies from citizen contractors.

For an enterprise to benefit from the 30 per cent procurement, it should be registered with the relevant government body; has at least 70 per cent membership of youth, women or persons with disabilities and the leadership shall be one hundred per cent youth, women and persons with disability, respectively.