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Women, Youth, PWDs secure Sh28.6 billion in state tenders

Businesses owned by women, youth, and persons living with disabilities (PWDs) were awarded state tenders worth Sh28.6 billion in the financial year ending June 2024. (Photo: Global Living)

By Maureen Kinyanjui | Wednesday, December 11, 2024

This reflects a 10.8 per cent increase from the Sh25.8 billion awarded the previous year.

Businesses owned by women, youth, and persons living with disabilities (PWDs) were awarded state tenders worth Sh28.6 billion in the financial year ending June 2024, reflecting a 10.8 per cent increase from the Sh25.8 billion awarded the previous year.

This data comes from the latest statistical abstract by the Kenya National Bureau of Statistics (KNBS).

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Under the government's affirmative action programme, which reserves 30 per cent of public procurement opportunities for special interest groups, women emerged as the largest beneficiaries.

Women-owned enterprises secured tenders worth Sh14.9 billion, up from Sh13.4 billion the previous year. The number of contracts awarded to women also rose significantly, from 11,861 to 14,422.

Youth-owned businesses, defined as those run by individuals aged 18 to 35, ranked second in terms of awarded tenders.

These businesses secured contracts totalling Sh10.5 billion, a notable increase from Sh9.4 billion the prior year.

The number of contracts awarded to the youth also climbed from 7,212 to 8,828 during this period.

PWDs saw a rise in their share of government contracts, winning tenders worth Sh3.2 billion compared to Sh2.9 billion a year earlier.

The number of contracts awarded to this group increased from 1,633 to 2,038. The government's definition of disability includes physical, sensory, and mental impairments that significantly impact an individual's economic, social, or environmental participation.

State corporations, county governments, and public institutions such as commissions and universities have been the primary implementers of this affirmative action.

Kenya Power, a State-owned electricity distributor, disclosed awarding Sh600 million in contracts to special interest groups in the eight months leading to February 2024.

The company has allocated Sh1.8 billion under the Access to Government Procurement Opportunities (AGPO) program for the current financial year.

Launched in October 2013 by former President Uhuru Kenyatta, AGPO aims to promote inclusivity in government procurement by reserving 30 per cent of tenders for women, youth, and PWDs.

To qualify, businesses must be legally registered as sole proprietorships, partnerships, or limited companies, with at least 70 per cent ownership by members of the target groups.

Despite the progress, the Sh28.6 billion figure remains below the Sh41.2 billion recorded in the fiscal year ending June 2022.

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