NAIROBI, Kenya — A proposed amendment to the Public Procurement and Asset Disposal Act could soon make it more challenging for government agencies to terminate contracts, aiming to shield contractors and suppliers from abrupt decisions by overzealous officials.
The bill, sponsored by Rongo MP Paul Abuor, comes in the wake of President William Ruto’s recent warnings to contractors over delays in implementing key projects.
If passed, the amendment will redefine the relationship between the government and its contractors, introducing stricter regulations on contract termination.
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Among the key provisions is a requirement for government agencies to provide a more extended notice period before terminating a contract.
Contractors will also be granted the opportunity to be heard, and agencies that terminate contracts without adhering to these new rules will face stiffer penalties.
“The principal purpose of this Bill is to enhance the accountability and fairness in the termination of procurement contracts by requiring the Solicitor General to confirm that contractors or suppliers have been accorded due notice and fair processes prior to termination,” the Bill states.
The proposed changes to Sections 62 and 135 of the Act, along with the insertion of a new Section 196A, would require the Solicitor General to confirm in writing that contractors have been duly notified and given ample time to respond before any termination is enforced.
Any termination that does not comply with these requirements would be considered void and unenforceable.
This legislative move follows President Ruto’s recent tour of Kisii and Kakamega counties, where he issued a stern warning to contractors accused of delaying critical government projects.
