National Bank of Kenya to set a financing facility to help Kenya Revenue Authority suppliers

By Shadrack Kavilu

Nairobi, Kenya-Over 903 suppliers registered by Kenya Revenue Authority under the Access to Government Procurement Opportunities (AGPO) programme are set to benefit from a financing facility from National Bank of Kenya (NBK).

Following a Memorandum of Understanding signed between KRA and NBK, the bank has established a financing facility focusing on qualifying suppliers to KRA.

Under the MOU, signed by KRA commissioner general John Njiraini and the National Bank managing director and Chief Executive Officer, Wilfred Musau, the bank will finance the qualified suppliers to service tenders obtained from KRA offices across the country.

Following the agreement, the suppliers will receive sensitizations and trainings from KRA on public procurement regulations and best practices as well as tax laws.

The Bank will, on the other hand, support the suppliers with capacity building programmes on entrepreneurship.

“This partnership is testament that the Bank is living up to its foundation objective of offering access to financial services to all Kenyans. We are committed to continue impacting generations to enable progress as the Bank celebrates 50 years since our foundation in 1968,”said Musau.

The aim of the AGPO Program is to facilitate the youth, women and persons with disability-owned enterprises to be able to participate in government procurement.

Under AGPO Program government ministries and state corporations are required to buy 30 percent of their supplies from businesses owned by youth, women and persons with disabilities.

The partnership aims at alleviating the capital challenges amongst the targeted special groups which is reflected in the negligible number of them who can competently apply for and win Government tenders.

In the Financial year 2017/2018, KRA set aside a total budget of over Kshs.325 Million which is 30 percent of the eligible contracts to AGPO registered suppliers.  Currently, KRA has awarded tenders to the disadvantaged groups, totalling an estimated Kshs.330 Million exceeding the organization’s target by 0.5 percent.

The agreement will deepen the partnership and cooperation that has existed between the two organisations in delivery of their respective mandates to the nation.

National Bank is one of the banks KRA has partnered with over the years on tax remittance through designated revenue collection platforms.