The Public Procurement Regulatory Authority (PPRA) has officially announced the implementation of the Public Procurement Capacity Building Levy Order, 2023, which will take effect on September 1, 2024.
This new directive, issued under Legal Notice No. 206 of 6th November 2023, establishes a levy aimed at funding the capacity development of individuals involved in public procurement and asset disposal proceedings.
The Levy Order, 2023, issued by the Cabinet Secretary for National Treasury and Economic Planning, John Mbadi, mandates that suppliers pay a levy of 0.03% of the value of all signed procurement contracts, exclusive of applicable taxes.
This levy will be used to provide funds for mentoring, training, and technical assistance to enhance public procurement practices.
The Authority has provided key details regarding the levy:
1. Commencement Date: The levy will be applicable to all procurement contracts signed from September 1, 2024, including contract extensions, renewals, and variations.
2. Scope: The Levy Order applies to long-term contracts where Local Service Orders (LSOs) or Local Purchase Orders (LPOs) are raised.
3. Payment Deadlines: Procuring entities must remit the levy amounts through the eCitizen payment platform by the 20th day of the month following the signing of contracts. A penalty of 5% will be imposed on any outstanding levy amounts not paid by the deadline.
4. Monthly Returns: All procuring entities are required to file monthly returns on levy amounts deducted and remitted through the Public Procurement Information Portal (tenders.go.ke).
The Authority has called upon all stakeholders—including procuring entities, suppliers, contractors, consultants, and participants in the public procurement and asset disposal system—to take note of the new levy and ensure compliance.
To support this transition, the PPRA will conduct stakeholder sensitization forums from September 2024 and maintain continuous engagement to promote compliance with the provisions of the Levy Order.
For further information or clarifications on the Public Procurement Capacity Building Levy Order, stakeholders are encouraged to contact the PPRA via email at info@ppra.go.ke.
