11 Things You Must Know Before Applying for Government Tenders in Kenya

Applying for government tenders in Kenya can be a lucrative opportunity for your business, but success requires more than just submitting a bid. Here are the critical things you need to know before diving in.

1. Mandatory e-GP Registration is Non-Negotiable

All suppliers MUST register on the official Electronic Government Procurement (e-GP) portal before they can bid for any government tender . The platform is accessible at www.egpkenya.go.ke .

• This is a mandatory requirement—no registration means no participation

• Ensure your business details, KRA PIN, and all supporting documents are uploaded and verified

• The system is used for all national and county government procurements

2. Know Your Eligibility and Special Categories

Before bidding, understand which tenders you qualify for:

If you fall under the Youth, Women, or PWD categories, register for the AGPO program to access reserved tenders that are not open to general competition .

3. Don’t Overcommit—Bid Only What You Can Deliver

The Government has issued a stern warning against contractors who take on more projects than they can handle .

“We are witnessing a worrying trend where some contractors are biting off more than they can chew. They aggressively pursue numerous tenders, quote unrealistically low prices to win bids, and ultimately struggle to deliver.” — Eliud Owalo, Deputy Chief of Staff

Consequences of overcommitting:

• Delayed project delivery

• Poor service quality

• Blacklisting from future government tenders

Only bid for tenders that match your technical capacity, financial resources, and available workforce.

4. Prepare Your Documents Thoroughly

Incomplete or inaccurate documentation is one of the fastest ways to get disqualified. Ensure you have:

• KRA PIN Certificate

• Valid Tax Compliance Certificate

• CR12 Form (for limited companies)

• Business Permit/License

• AGPO Certificate (if applicable)

• Detailed Company Profile

• Local Content Plan — mandatory requirement showing how you will employ local citizens and use locally manufactured goods (minimum 40% local sourcing)

Critical Warning: Providing false information in your tender documents can lead to debarment from participating in future public procurement .

5. Understand the Evaluation Criteria

Tenders are awarded based on the Lowest Evaluated Responsive Tender principle . This means:

• Your bid must be substantially responsive to all requirements in the tender document

• Price is a major factor, but non-compliance with technical or eligibility criteria will disqualify you

• Price adjustments may be made for:

  • Unconditional discounts offered

  • Currency conversion (if applicable)

  • Quantifiable non-material non-conformities

For multi-lot tenders, you may bid for one or multiple lots, and each is evaluated separately .

6. Bid Bonds and Performance Security

Bid Bond (Tender Security):

• Required with your tender submission

• Acceptable formats: Cash, Bank Guarantee, Insurance Company approved by PPRA, or Letter of Credit

• Format must follow PPDA Section 51 guidelines

Performance Security:

• Required after award notification (not with initial bid)

• Must be submitted within 21 days of receiving the Letter of Acceptance

• Failure to submit results in forfeiture of your bid bond and contract cancellation

• A foreign institution providing a bond must have a correspondent financial institution in Kenya

7. Follow Clarification and Communication Protocols

• Seek clarifications ONLY through the official email provided in the tender document

• Do NOT canvass—any form of lobbying or improper influence will lead to automatic disqualification

• Regularly check the procuring entity’s website for addendums, clarifications, or changes before the closing date

• Tenders received after the specified deadline are considered “Late Tenders” and will not be considered under any circumstances

8. Mandatory Site Visits and Pre-Bid Meetings

Some tenders, especially for infrastructure or works contracts, require mandatory site visits and pre-bid meetings .

• Failure to attend when required is grounds for disqualification

• Site visits allow you to understand actual working conditions, access, and site-specific challenges

• No claims for lack of knowledge of site conditions will be entertained after bid submission

9. For Foreign Companies: Stricter Rules Apply

Proposed amendments to the Public Procurement & Asset Disposal Act introduce tougher conditions for foreign firms :

Foreign firms debarred in other jurisdictions will automatically be debarred in Kenya for up to 10 years .

10. Timeline for Feedback

• Tender evaluation should be completed within 30 days of the bid opening date

• It is advisable to check at least one month after tender closure for communication on results

• Procuring entities communicate in writing to all candidates after decisions are made

11. Your Right to Challenge: The Appeals Process

If you believe you were unfairly treated, you have recourse:

Step 1: Administrative Review

• File within 14 days of notification of breach or contract award

• Review committee must make a decision within 21 days

Step 2: Judicial Review

• If dissatisfied, appeal to the High Court within 14 days of review decision

• Requires depositing a percentage of contract value as security

• Further appeal to the Court of Appeal within 7 days, with a final decision within 45 days

Quick Checklist Before You Bid

✅ Registered on e-GP portal (www.egpkenya.go.ke)
✅ All statutory documents (KRA PIN, Tax Compliance, CR12) valid
✅ AGPO certificate obtained (if applicable)
✅ Tender documents downloaded and thoroughly reviewed
✅ Clarifications sought through official channels before deadline
✅ Bid bond prepared in acceptable format
✅ Capacity to deliver confirmed (don’t overcommit)
✅ Local content plan included (if required)
✅ Site visit attended (if mandatory)
✅ Bid submitted before closing date and time

Pro Tip: Stay updated on the latest tenders by regularly checking Tenderyetu.com, but remember—all official submissions must go through the e-GP portal