Home Growing a business Why Kenyan Businesses Should not Ignore AGPO

Why Kenyan Businesses Should not Ignore AGPO

by Biashara Kenya

1. One will be able to participate in the 30 percent of government tenders that have been set aside for youth, women and persons with disability through AGPO.
2. Accessibility to credit/loan facilities namely LPO/LSO financing from the Youth Enterprise Development fund.
3. A participant in a tender will be excluded from the requirement to get a bid bond and will instead fill in and sign a tender securing declaration form.
4. Where delay of payments for works performed are likely to happen, a procuring entity may facilitate invoice discounting arrangements with a financial institution for the purpose of advancing credit to the affected enterprises.


How did AGPO come about?

In February 2012, His Excellency the Retired President, Hon. Mwai Kibaki directed that 10% of all Government contracts be earmarked and awarded to the youth. The Policy directive was informed by the Government’s realization that in order to meaningfully address the issue of youth unemployment. It is necessary to give them opportunities to participate in government contracts and tenders.

In 2013,His Excellency the President Uhuru Kenyatta, pledged that the procurement rules would be amended to allow 30 per cent of contracts to be given to the youth, women and persons with disability without competition from established firms. His Excellency the President directed that the issue of 30 per cent allocation of all Government procurement to the youth should be adhered to, warning those who will fail to effect the directive will be sacked.

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