Kenya: Over Half of State Contractors Remain Hidden - PPRA

Nairobi — Businesses awarded more than half of government contracts during the 2024/25 financial year failed to disclose their beneficial ownership information, exposing persistent transparency gaps in Kenya's public procurement system.

A new report by the Public Procurement Regulatory Authority (PPRA) shows that of the 25,994 contract awards reported during the year, beneficial ownership information was disclosed for only 11,175 contracts, representing 43 percent of the total.

The remaining 57 percent were awarded without the disclosure of beneficial owners, raising concerns over accountability in the award of public tenders.

"A total number of 25,994 contract awards were reported. However, beneficial owners were disclosed for a total number of 11,175 contracts which is 43 percent."

"It was noted that only 316 procuring entities (74.4 percent) reported on beneficial ownership information affecting the principle of transparency as envisaged under Article 227 of the Constitution."

The regulator said only 316 procuring entities submitted beneficial ownership information despite 411 entities reporting contract awards, leaving significant gaps in the public disclosure framework designed to identify the natural persons who ultimately own or control companies doing business with the government.

Beneficial ownership disclosure was introduced as part of procurement reforms to strengthen accountability, reduce conflicts of interest and deter the use of proxy companies in public contracting.

The report also points to broader weaknesses in procurement compliance across government institutions.

Out of 50,142 tender notices and procurement documents published during the financial year, PPRA reviewed 5,064 about 10 percent; with 2,127 of them, or 42 percent, found to have compliance deficiencies requiring corrective action by procuring entities.

Where non-compliance was identified, the Authority directed the affected institutions to issue addenda and implement remedial measures in line with the Public Procurement and Asset Disposal Act before reporting back on the corrective actions taken.

Read the original article on Capital FM.