President William Ruto has declined to sign the Public Procurement and Asset Disposal (Amendment) Bill, 2024, citing concerns that certain provisions could negatively affect Kenya's investment climate and procurement framework.
The legislation, which had passed both the National Assembly and Senate, was sent back to Parliament with a detailed memorandum outlining the President's reservations and suggested amendments. The primary issue raised relates to the Bill's definitions of local and foreign firms, which the President argues are impractical and inconsistent with government efforts to attract foreign investment and mobilise private capital.
National Assembly Speaker Moses Wetang’ula informed MPs that President Ruto has invoked his constitutional powers under Article 115(1)(b) to refer the Bill back for reconsideration. The President objected to numerous clauses, including clauses 2, 3, 6-8, 10-16, 18-21, 22-27, which will now be reviewed by Parliament.
The Speaker directed the Bill and the presidential memorandum to the Finance and National Planning Committee, which is tasked with preparing a report within the stipulated timelines to guide Parliament's reconsideration.
Next Steps in the Legislative Process
- Parliament has 21 days to consider the President's reservations as stipulated by Standing Order 154(2).
- Debate will focus solely on the sections flagged by the President, not the entire Bill.
- Following the National Assembly's review, the Bill will be forwarded to the Senate for concurrence before proceeding.
According to the Constitution, Parliament may amend the Bill to address the President's concerns or pass it again without changes, requiring a two-thirds majority in both Houses if amendments are not fully adopted.
This development underscores the government's balancing act between enhancing public procurement regulations and maintaining an attractive environment for foreign investment.
