The proposed amendment seeks to uphold the principles of natural justice, align with constitutional mandates for fair administrative action, and reduce disputes associated with contract terminations
Contractors and suppliers who have entered agreements with public entities could be shielded from losing their contracts if a proposed amendment to the Public Procurement and Asset Disposal Act is enacted. Sponsored by Rongo MP Paul Abuor, the Public Procurement and Asset Disposal Amendment Bill 2025 seeks to improve transparency and fairness in the termination of procurement contracts. The bill mandates that the Solicitor General ensures contractors and suppliers are given proper notice and a fair process prior to any contract termination.
The proposed amendment seeks to uphold the principles of natural justice, align with constitutional mandates for fair administrative action, and reduce disputes associated with contract terminations.
“Public procurement plays a critical role in service delivery and development projects across Kenya. However, disputes arising from contract terminations often lead to prolonged legal battles, project delays, and financial losses,” said Abuor.
The MP was arrested yesterday by the Ethics and Anti-Corruption Commission (EACC), just days after introducing a Bill advocating for tougher penalties against state officers who misappropriate public funds. He is accused of awarding tenders worth Ksh.122 million from the Rongo National Government Constituency Development Fund (NG-CDF) to companies linked to himself
Under the proposed bill, before advising on contract termination, the Solicitor General would be obligated to confirm that the contractor or supplier has been issued a written notice, clearly outlining the reasons for the intended termination.
“The Solicitor General will ensure that contractors or suppliers are given at least 14 days to respond to the notice. Only after adhering to principles of natural justice and due process can termination proceed. If these requirements are not met, the termination will be declared void and unenforceable,” said Abuor.
Abuor argued that the amendment demonstrates the country’s commitment to upholding the rule of law, strengthening public trust in government processes, and safeguarding public resources.
The Public Procurement Regulatory Authority (PPRA) would be tasked with issuing detailed guidelines to standardize termination procedures across all public procurement entities.
Should the amendment pass, contractors and suppliers would have greater confidence in the integrity of procurement processes, potentially reducing disputes and minimizing delays in project execution.
“We are optimistic that the passage of this amendment will represent a major step in improving the management of public procurement in Kenya. Fewer disputes will lead to smoother project implementation,” said Abuor.
Abuor is specifically proposing amendments to Section 62 of the Public Procurement and Asset Disposal Act, 2015. The new provisions would require the Solicitor General to confirm in writing that a contractor or supplier has been notified of the termination, along with the reasons for the decision.
In addition, the amendment includes provisions for the Public Procurement Regulatory Authority to issue guidelines on termination procedures, covering timelines, documentation requirements, communication protocols, and mechanisms for contractors or suppliers to respond to termination notices.
