Kenya Revenue Authority (KRA) suppliers under the Access to Government Procurement Opportunities (AGPO) programme are set to receive a major boost from a Memorandum of Understanding between the taxman and and the National Bank of Kenya (NBK) that was ratified on Wednesday.
Over 903 suppliers registered by KRA among them youth, women and persons with disability will substantially benefit from the MoU that was signed by KRA Commissioner General John Njiraini and National Bank Managing Director & Chief Executive Officer Wilfred Musau.
Following the agreement, the suppliers will receive sensitisation and training from KRA on public procurement regulations and best practices as well as tax laws. The Bank will, on the other hand, support the suppliers with capacity building programmes on entrepreneurship.
Further, National Bank has established a financing facility focusing on qualifying suppliers to KRA. The Bank will finance the qualified suppliers to service tenders obtained from KRA offices across the country.
Speaking during the event, Musau said: “This partnership is testament that the Bank is living up to its foundation objective of offering access to financial services to all Kenyans. We are committed to continue impacting generations to enable progress as the Bank celebrates 50 years since our foundation in 1968.”
The aim of the AGPO Programme is to facilitate the youth, women and persons with disability-owned enterprises to be able to participate in government procurement. This through the implementation of the government initiative that 30% of government procurement opportunities be set aside specifically for these enterprises.
It is an affirmative action aimed at empowering enterprises owned by youth, women and persons with disability by giving them more opportunities to do business with Government.
The partnership aims at alleviating the capital challenges amongst the targeted special groups which is reflected in the negligible number of them who can competently apply for and win Government tenders.
In the Financial year 2017/2018, KRA set aside a total budget of over Ksh 325 million which is 30% of the eligible contracts to AGPO registered suppliers. Currently, KRA has awarded tenders to the disadvantaged groups, totalling an estimated Ksh 330 Million exceeding the organisation’s target by 0.5%.
The agreement will deepen the partnership and cooperation that has existed between the two organisations in delivery of their respective mandates to the nation.
National Bank is one of the banks KRA has partnered with over the years on tax remittance through designated revenue collection platforms.