The Public Procurement and Asset Disposal (Amendment) Bill, 2022
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Exclusive Preference Threshold Raised to KSh 20 Billion
The Bill proposes to amend Section 157(8)(a)(iii) of the Public Procurement and Asset Disposal Act, 2015. It replaces the "five hundred million" shillings limit with a "twenty billion" shillings threshold, guaranteeing that exclusive preference is given to Kenyan citizens for public tenders up to this higher valuation.
Local Trader Protection From Foreign Competition
According to the Memorandum of Objects and Reasons, the principal objective of this change is to secure exclusive preference for Kenyan citizens in higher-value tenders, insulating local business owners and traders from foreign competition.
Implications for County Government Procurement
The Bill is designated as a Bill concerning counties under parliamentary Standing Orders. It directly impacts procurement procedures at both national and county levels by applying the new KSh 20 billion exclusive preference threshold to county-led tenders.
Bill No.
No. 62 of 2022
Gazette No.
Supplement No. 202 of 2022
Sponsor
MEJJADONK BENJAMIN GATHIRU
Background
The Public Procurement and Asset Disposal (Amendment) Bill, 2022, is a legislative proposal introduced in the National Assembly of Kenya. It seeks to amend the Public Procurement and Asset Disposal Act, 2015 (No. 33 of 2015) to enhance provisions protecting domestic traders in public procurement markets.
Key Amendments
- Amendment of Section 157 of No. 33 of 2015:
The Bill proposes to amend subsection (8)(a)(iii) of Section 157 of the principal Act. It deletes the words "five hundred million" and substitutes them with "twenty billion". This increases the prescribed monetary threshold for exclusive preference of public tenders to Kenyan citizens from KSh 500,000,000 to KSh 20,000,000,000.
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