Kenya Power contracts awarded to businesses owned by the youth, women, and persons with disabilities hit Sh4.15 billion in the fiscal year ended June 30, 2024, handing a major lift to the three special groups.
Youth-owned businesses took 92 per cent of the cash or Sh3.8 billion as the total value of the tenders to the three groups grew 779.2 per cent from the Sh470 million awarded the previous year under the Access to Government Procurement Opportunities (Agpo).
Under the Constitution-backed Agpo, State entities are required to reserve up to 30 per cent of their tenders to youth, women, and persons with disabilities every financial year. This is meant to economically uplift the three special groups given the challenges they faced while competing for government deals.
Kenya Power’s General Manager for Supply Chain and Logistics John Ngeno attributed the surge to increased awareness campaigns as the electricity distribution monopoly sought to enter into deals with the three special groups.
“During the last financial year, we sustained education forums for the special interest groups on how to participate in our procurement process. The uptake has been steady over the years owing to these engagements and we hope to sustain 100 per cent absorption of our annual AGPO budget as more Kenyans become aware of these opportunities,” Dr Ng’eno said.
Businesses owned by women took up deals worth Sh324 million and the remaining Sh1.3 million went to enterprises owned by persons with disabilities.
The increase in tenders to the three groups was also key to boosting their fortunes given the shaky business environment where firms are grappling with near-stagnant sales, which has in turn hit their cash flows.
Agpo was rolled out in October 2013 by the administration of former President Uhuru Kenyatta to comply with the constitutional requirement on affirmative action and the procurement laws on fair, equitable, transparent, and cost-effective public purchase of goods and services.
Under the Agpo programme, State entities award tenders that are not highly technical. These include deals for the supply of locally available materials and common-user items, services, and works.
The increase in tenders awarded under the Agpo requirement came in the year when Kenya Power made a net profit of Sh30.08 billion, which was a turn-around from a net loss of Sh3.19 billion posted the previous year.
Kenya Power says that it targets to award Sh11.6 billion of tenders to businesses owned by women, youth, and persons with disabilities in the current financial year that lapses this June.
