NAIROBI, Kenya, May 23 – Business suppliers under the Access to Government Procurement Opportunities (AGPO) programme are set to receive a major boost from a Memorandum of Understanding signed between the National Bank of Kenya and Kenya Revenue Authority.
Following the signing of the agreement National Bank will establish a financing facility focusing on qualifying suppliers to KRA. The bank will also provide KRA with data of the suppliers financed under the partnership
NBK’s mandate will furthermore entail accepting and reviewing financing applications from KRA suppliers registered under the AGPO programmes.
“National Bank is a responsible corporate citizen and the main aim of this partnership is to support the government in achieving its set objective of enabling special groups in Kenya gain access to Government Procurement Opportunities,” said National Bank Bank’s Managing Director and CEO Wilfred Musau.
“We have strategically positioned ourselves to be a pillar in the economy through supporting small and medium businesses through Micro Banking. This has ensured access to credit to this segment despite the prevailing economic and regulatory circumstances,” Mr. Musau added.
The Bank has committed to offer LPO financing facilities to qualified KRA suppliers who are registered under AGPO to enable them to deliver on tenders secured. The partnership will adopt the already existing bank’s LPO financing product.
The MoU will provide KRA and NBK cutting-edge opportunity to jointly conduct stakeholder engagement meetings, supplier forums and exhibitions.
The suppliers will receive sensitizations and training from KRA on public procurement and tax laws as well as regulations and procedures. KRA will further sensitise and train NBK staff on provision of relevant basic information on public procurement law regulations and procedures.
“This MoU will enable the two parties to jointly carry out capacity building programmes to enhance cross-functional efficiencies and value additions,” said Mr. Ezekiel Saina, Commissioner for Corporate Support Services at Kenya Revenue Authority.
The AGPO Program was developed to facilitate the youth, women and persons with disability-owned enterprises to participate in government procurement. In the Financial year 2017/2018, KRA set aside a total budget of over Kshs.300 Million to AGPO registered suppliers. Currently, KRA has awarded tenders to the disadvantaged groups, totaling an estimated Kshs.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. NBK is one of the banks KRA has partnered with over the years on tax remittance through the iTax platform.