The National Treasury has terminated 20 tenders for the supply and delivery of various goods and services, citing provisions under the Public Procurement and Asset Disposal Act, 2015. In a circular issued on Tuesday, August 26, Treasury confirmed that the cancellations were in line with Section 63 of the Act, which outlines conditions under which procurement processes can be nullified.
The terminated tenders covered a wide scope of goods and services, including the supply of newspapers, agricultural equipment, timber products, insecticides, chemicals, spraying equipment, and locally assembled tippers. Others affected were tenders for the delivery of flags, emblems, carpets, water pumps, paints, thinners, corrosion-proofing products, and professional cleaning services.
According to Treasury, the tenders had initially been advertised on December 10, 2024, and March 11, 2025, as part of framework contracts managed by the Kenya Procurement and Disposal Agency. However, in its notice, the Treasury directed all bidders who had participated in the process to note that the tenders had been formally cancelled.
Section 63(1) of the Public Procurement and Asset Disposal Act provides several grounds for termination. A tender may be cancelled if new legislation makes its procurement unnecessary, if the technology or products being sought become obsolete, or if significant advancements render the procurement irrelevant. Importantly, the law requires that such cancellations occur before a contract is awarded to a bidder.
Further, the Act stipulates that accounting officers must provide valid reasons for cancellation and communicate the decision to all affected bidders within 14 days of termination. This requirement is intended to promote transparency and accountability in government procurement processes.
The Treasury’s decision underscores the government’s effort to ensure that public resources are utilized efficiently and in accordance with the law. While the cancellation may disrupt suppliers who had bid for the tenders, it reflects the state’s commitment to compliance and prudent management of public procurement.
The move is also likely to spark discussions on how government agencies can improve planning and execution of procurement to minimize frequent cancellations that affect both suppliers and service delivery.
