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Youth and Women Win Big as KenGen Tenders Hit Sh2.23bn

The Kenya Electricity Generating Company (KenGen) head offices in Nairobi, showing the company's main administrative building.
KenGen head offices in Nairobi, where the company oversees power generation and procurement programs, including tenders awarded to youth and women-led businesses | Ghafla Kenya
KenGen awarded Sh2.23 billion in tenders to youth, women, and persons with disabilities, expanding inclusive business opportunities and supporting economic growth in Kenya.

Kenya Electricity Generating Company PLC has reported a rise in the value of tenders awarded to youth, women, and persons living with disabilities, reaching Sh2.23 billion in the latest financial year. The increase reflects efforts to widen access to government-linked business opportunities.

The power producer said the growth was recorded under the Access to Government Procurement Opportunities (AGPO) program, which reserves part of public procurement for special groups. The initiative is aimed at boosting economic inclusion.

According to KenGen, the Sh2.23 billion awarded marks a notable improvement compared to previous years, showing stronger participation by enterprises owned by women, youth, and persons with disabilities in the energy sector.

Company officials noted that the increase aligns with national policies promoting fair competition and equal opportunities in public contracts. They said the company has continued to strengthen procurement systems to make bidding easier.

KenGen’s management explained that many of the tenders covered supply of materials, maintenance works, transport services and consultancy contracts linked to its operations across the country.

The company stated that empowering small and medium sized enterprises remains important in supporting local economic growth. By opening more contracts to these groups, KenGen says it is helping create jobs and business expansion.

KenGen added that the procurement opportunities also support the government’s broader agenda of reducing unemployment among young people and increasing financial independence for women led businesses.

Industry experts say access to such contracts can help small businesses build capacity, improve cash flow and gain experience needed to compete for larger projects in the future.

However, some business owners have often raised concerns over delayed payments, high compliance costs and competition from larger firms that may indirectly benefit through partnerships.

KenGen said it has been working to address some of these concerns by improving transparency in tendering and offering guidance on procurement requirements for first-time applicants.

The company has also encouraged eligible businesses to register on its supplier database and take advantage of training sessions that explain bidding procedures and documentation.

KenGen officials said the company remains committed to meeting and even surpassing the legal threshold requiring at least 30 percent of public procurement opportunities to go to special interest groups.

The increase comes at a time when Kenya is pushing for more inclusive economic participation, especially in sectors such as energy, infrastructure, and technology, where smaller enterprises have often struggled to gain entry.

Analysts say the move could have wider benefits beyond KenGen, as more state corporations adopt similar approaches to procurement. This may strengthen local supply chains and reduce dependence on large contractors.

Women entrepreneurs have welcomed the rise, saying it offers more room for business growth and encourages confidence among female owned enterprises that often face challenges accessing capital.

Youth-led firms have also expressed optimism, noting that government tenders can provide stable income and opportunities to invest in skills, equipment and workforce development.

KenGen said it will continue reviewing its procurement policies to ensure fairness and wider participation. The company believes inclusive contracting is part of building sustainable growth in the country’s energy sector.

As Kenya expands electricity generation and renewable energy projects, procurement is expected to remain a major driver of local enterprise development, especially for groups targeted under the AGPO framework.

provide has reported a rise in the value of tenders awarded to youth, women, and persons living with disabilities, reaching Sh2.23 billion in the latest financial year. The increase reflects efforts to widen access to government linked business opportunities.

The power producer said the growth was recorded under the Access to Government Procurement Opportunities (AGPO) program, which reserves part of public procurement for special groups. The initiative is aimed at boosting economic inclusion.

According to KenGen, the Sh2.23 billion awarded marks a notable improvement compared to previous years, showing stronger participation by enterprises owned by women, youth and persons with disabilities in the energy sector.

Company officials noted that the increase aligns with national policies promoting fair competition and equal opportunities in public contracts. They said the company has continued to strengthen procurement systems to make bidding easier.

KenGen’s management explained that many of the tenders covered supply of materials, maintenance works, transport services and consultancy contracts linked to its operations across the country.

The company stated that empowering small and medium sized enterprises remains important in supporting local economic growth. By opening more contracts to these groups, KenGen says it is helping create jobs and business expansion.

KenGen added that the procurement opportunities also support the government’s broader agenda of reducing unemployment among young people and increasing financial independence for women led businesses.

Industry experts say access to such contracts can help small businesses build capacity, improve cash flow and gain experience needed to compete for larger projects in the future.

However, some business owners have often raised concerns over delayed payments, high compliance costs and competition from larger firms that may indirectly benefit through partnerships.

KenGen said it has been working to address some of these concerns by improving transparency in tendering and offering guidance on procurement requirements for first time applicants.

The company has also encouraged eligible businesses to register on its supplier database and take advantage of training sessions that explain bidding procedures and documentation.

KenGen officials said the company remains committed to meeting and even surpassing the legal threshold requiring at least 30 percent of public procurement opportunities to go to special interest groups.

The increase comes at a time when Kenya is pushing for more inclusive economic participation, especially in sectors such as energy, infrastructure, and technology, where smaller enterprises have often struggled to gain entry.

Analysts say the move could have wider benefits beyond KenGen, as more state corporations adopt similar approaches to procurement. This may strengthen local supply chains and reduce dependence on large contractors.

Women entrepreneurs have welcomed the rise, saying it offers more room for business growth and encourages confidence among female owned enterprises that often face challenges accessing capital.

Youth-led firms have also expressed optimism, noting that government tenders can provide stable income and opportunities to invest in skills, equipment and workforce development.

KenGen said it will continue reviewing its procurement policies to ensure fairness and wider participation. The company believes inclusive contracting is part of building sustainable growth in the country’s energy sector.

As Kenya expands electricity generation and renewable energy projects, procurement is expected to remain a major driver of local enterprise development, especially for groups targeted under the AGPO framework.

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