NAIROBI, Kenya Sept 4 – The Public Procurement Regulatory Authority(PPRA) has urged procuring entities including suppliers, contractors ,consultants and service providers to adhere to the Public Procurement Capacity Building Levy Order, 2023 that effected on September 1 2024.
According to the Levy Order, 2023, a supplier must pay a levy on all procurement contracts they sign with a procuring entity. The levy is calculated at a rate of 0.03 percent of the signed contract’s value, exclusive of any relevant taxes.
The Public Procurement Regulatory Authority warned that the entities that shall fail to comply with the order shall be subjected to a penalty of 5 percent of the outstanding Levy amounts to be remitted to the Authority through the e Citizen payment platform.
The Authority mandated to monitor, assess and review the public procurement and asset disposal system therefore directed all Procuring entities to remit the Levy amounts to the Authority by the 20th day of the subsequent month.
“The commencement date for The Levy Order, 2023 is 1st September, 2024 failure to which a penalty of 5% of the outstanding levy amounts shall apply for each and every month the levy amount remains unpaid,” PPRA warned.
The Levy shall apply to all signed contracts resulting from all procurement proceedings initiated from September 1, 2024 as well as any contract extensions, renewals or variations made.
“The Levy Order, 2023 shall equally apply to contracts that are long term in nature (Term Contracts) where Local Service Orders (LSOs) or Local Purchase Orders (LPOs) are raised as and when orders are made,” PPRA stated.
The Authority further urged all procuring entities to file their monthly returns by the 20th day of each subsequent month on all levy amounts deducted and remitted to the Authority through the Public Procurement Information Portal.
The Public Procurement Capacity Building Levy Order, 2023 was proposed by the National Treasury in order to provide funds for the capacity development of persons involved in public procurement and asset disposal proceedings through mentoring, training, and technical assistance.
