Unlocking Opportunities: A Practical Guide to Tendering, Enterprise Funds, and Fair Procurement in Kenya

Participants engage in the UN Women Media Capacity Workshop on Gender-Responsive Procurement, held at ibis Styles Hotel, Westlands, on Thursday. Photo courtesy of UN Women.

Public procurement in Kenya represents one of the most significant economic opportunities for small and medium-sized enterprises (SMEs), particularly for women and youth-led businesses. The National Treasury has introduced measures to make these opportunities more accessible — but understanding the processes, requirements, and equity safeguards is crucial for success.

This guide breaks down the essentials of navigating tender security requirements, accessing the Women Enterprise Fund, obtaining the necessary certification, and understanding why transparency and equity matter in procurement.

1. Tender Security Declaration Form — Reducing Barriers for SMEs

Traditionally, participating in government tenders required bidders to provide tender security in the form of a bank guarantee or insurance bond — a costly process that often locked out small businesses.
The Tender Security Declaration Form was introduced as a more inclusive alternative, especially for tenders targeting women, youth, and persons with disabilities.

Instead of tying up capital in a bank guarantee, eligible bidders can sign a declaration committing to honour their bid terms. If the bidder withdraws or fails to sign the contract, they may face sanctions — but they avoid the heavy upfront costs.

Key points to note:

• It applies to certain categories of tenders, particularly those reserved under the Access to Government Procurement Opportunities (AGPO) programme.

• Not all procuring entities adopt it uniformly — SMEs must carefully read tender documents to confirm eligibility.

• The form should be filled truthfully and submitted alongside the bid, as any false declarations may lead to debarment.

2. Women Enterprise Fund — Financing for Growth

The Women Enterprise Fund (WEF) is a government initiative designed to provide affordable credit and capacity-building support to women entrepreneurs.

For women seeking to supply goods or services to government agencies, WEF can be a crucial funding source for:

• Purchasing inventory

• Covering initial tender-related expenses

• Expanding operations to meet supply demands

Access process:

1. Form or join a registered women’s group or operate as a registered business.

2. Apply through the Ministry of Public Service, Gender and Affirmative Action offices or authorised financial intermediaries.

3. Provide the required documentation, including business registration and, if applicable, AGPO certification.

Tip: Women entrepreneurs in rural areas should leverage local WEF constituency offices, which are often more accessible than Nairobi-based headquarters.

3. Certification Requirements — Your Ticket to the 30% Allocation

Under the 30% public procurement allocation policy, government entities must set aside at least 30% of their procurement budget for women, youth, and persons with disabilities.

To qualify, businesses must obtain an AGPO Certificate from the Public Procurement Regulatory Authority (PPRA).

Certification process:

• Register your business with the Registrar of Companies or relevant county authority.

• Apply for AGPO certification online via the PPRA portal.

• Provide:

  • Business registration certificate

  • Tax compliance certificate

  • Identification documents of owners

  • For youth-owned businesses — proof of age

  • For women-owned businesses — proof of ownership by women

• Once approved, download your AGPO certificate and attach it to your tender bids.

4. Why Transparency and Equity Matter in Procurement

Procurement reform is not just about meeting quotas — it’s about ensuring that public spending genuinely empowers marginalized groups and fosters fair competition.

Transparency ensures that:

• Tender notices are published openly

• Evaluation criteria are clear

• Award decisions can be verified

Equity ensures that:

• Marginalized groups have a fair chance to win contracts

• Barriers such as excessive financial requirements are reduced

• Rules are applied uniformly, without favouritism

When procurement systems operate transparently and equitably, more SMEs can thrive, more jobs are created, and public trust in government spending increases.

Final Word

For women, youth, and persons with disabilities, government tenders represent not just contracts, but a pathway to sustainable business growth. Understanding how to navigate tender security requirements, secure financing from the Women Enterprise Fund, and obtain AGPO certification — while keeping a close eye on transparency and fairness — is key to unlocking these opportunities.

The 254 Report, we will continue monitoring procurement policy changes and sharing practical tips to help Kenyan entrepreneurs compete and succeed in the public procurement space.