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Ruto pressed to investigate cartels hijacking billions in AGPO tenders

Concerns raised that cartels may be exploiting the identities of youth, women, and PWDs to unfairly access government tenders meant for these marginalized groups.
President William Ruto at State House, Nairobi
President William Ruto at State House, Nairobi

The Access to Government Procurement Opportunities (AGPO) program was introduced in 2013 to promote economic inclusion by allocating 30% of government tenders to enterprises owned by youth, women, and persons with disabilities (PWDs). 

In the financial year 2022/23, contracts worth Sh45.1 billion were awarded under this program, with women-owned businesses securing Sh24.87 billion, youth enterprises receiving Sh16.91 billion, and PWDs getting Sh3.36 billion.

However, concerns have emerged about whether the intended beneficiaries are truly accessing these opportunities. 

AGPO certificate

Reports indicate that some government officials and influential business figures could be using the target groups' identification details to register companies and win tenders, sidelining genuine applicants

Trans Nzoia Senator Allan Chesang has called for the formation of a task force to investigate the misuse of youth and PWDs' identities in procurement fraud.

READ: Oscar Sudi to release report exposing govt officials behind rigged tenders

He spoke during a church service at Cheptais Boys High School in Trans Nzoia County on Sunday 

“Mr President, I want to bring to your attention that some people are taking advantage of youths, women and PWDs. Some use their ID cards to register companies but when opportunities come, it is them who don’t belong to that category who benefit,” he said.

Senator Chesang’s concerns highlight an alleged loophole in the system where individuals, including government officials, register businesses under AGPO categories using the identification cards of unsuspecting youth and PWDs. 

Senator Allan Chesang speaking during a church service

This allows them to access government tenders reserved for these groups while the real beneficiaries remain locked out.

The government has been implementing procurement reforms, including requiring firms to disclose their beneficial ownership before securing tenders. 

Proxies are individuals or entities that act on behalf of someone else, often to mask the true identity of those involved in corrupt practices.

In Kenya, this can manifest in various ways, including the use of front companies or associates who carry out transactions that benefit corrupt officials without directly implicating them.

Investigating cases involving proxies is often complex and resource-intensive. Detectives take long to gather sufficient evidence against those truly responsible, leading to low conviction rates and a perception that justice is not served.

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