President Ruto sends procurement bill back over Kenya investment risks

• President William Ruto has declined to sign into law the Public Procurement and Asset Disposal (Amendment) Bill, 2024.
• The President raised concerns that some provisions of the Bill could weaken Kenya's public procurement framework and hurt its investment prospects.
• The Bill was returned to Parliament with proposed changes for fresh consideration by Members of Parliament (MPs).
• President Ruto expressed reservations over 17 clauses of the Bill, including definitions of local and foreign firms.
• The Presidential Memorandum highlights the need for careful consideration of these provisions to avoid unintended consequences.

The President has expressed concerns that some provisions of the Bill could weaken Kenya's public procurement framework and hurt its investment prospects.

In a move that has significant implications for Kenya's investment climate, President William Ruto has declined to sign into law the Public Procurement and Asset Disposal (Amendment) Bill, 2024. The Bill was returned to Parliament with proposed changes after the President raised concerns that some of its provisions could weaken the country's public procurement framework and hurt its investment prospects. This decision marks a significant development in Kenya's legislative process, as it sets the stage for fresh consideration by Members of Parliament (MPs) on the contentious clauses. The Bill was initially approved by the National Assembly in November 2024 and received Senate approval in May this year.

The President's decision to refer the Bill back to Parliament is based on his constitutional powers under Article 115 of the Constitution. This provision allows the Head of State to refer a Bill back to Parliament for reconsideration, citing reservations over specific clauses. In this case, President Ruto has expressed concerns over 17 clauses of the Bill, which he believes could have unintended consequences for Kenya's investment climate and public procurement framework. The Presidential Memorandum highlights the need for careful consideration of these provisions, as they relate to the definition of local and foreign firms, among other issues.

The implications of this development are far-reaching, particularly for businesses operating in Kenya or considering investments in the country. The proposed changes to the Public Procurement and Asset Disposal (Amendment) Bill could have a significant impact on the country's investment climate, making it more challenging for foreign direct investment to flow into the economy. Lawyers should be aware of these potential implications and advise their clients accordingly, as compliance with the proposed changes will be crucial in navigating Kenya's procurement system.

Lawyers should watch for the potential implications of this development on their clients' business operations and investments in Kenya, particularly with regards to compliance with the proposed changes to the Public Procurement and Asset Disposal (Amendment) Bill.

Source: Original reporting via [Source]