President William Ruto has declined to assent to the Public Procurement and Asset Disposal (Amendment) Bill, 2024, referring it back to Parliament for further review. The decision follows concerns that certain provisions could negatively impact Kenya's investment environment and create conflicts within existing procurement laws.
National Assembly Speaker Moses Wetang'ula informed MPs that under Article 115(1)(b) of the Constitution, the President exercised his authority to return the Bill along with a memorandum outlining specific reservations.
"I wish to convey to the House a message from His Excellency the President regarding the referral of the Public Procurement and Asset Disposal Amendment Bill, National Assembly Bill No. 48 of 2024, back to Parliament for reconsideration," Wetang'ula stated.
The President's objections target multiple clauses, including clauses 2, 3, 6 through 8, and 11 through 27. A key issue raised concerns the Bill's definitions of local and foreign firms, which are viewed as impractical and misaligned with government goals to attract foreign direct investment, mobilize private capital, and enhance the business climate.
Next Steps in Parliamentary Process
The Bill had previously secured approval from both the National Assembly and the Senate before being presented to the President for assent. Following the referral, the Speaker tasked the Departmental Committee on Finance and National Planning to urgently review the President's concerns and submit a report within the constitutionally mandated 21-day period.
Wetang'ula emphasized that only the clauses flagged by the President will be reconsidered. The committee's recommendations will guide Parliament on whether to adopt the President's proposed amendments or override them through the required voting threshold.
Once the National Assembly concludes its deliberations, the outcome will be forwarded to the Senate for concurrence, marking the final stage of the legislative process.
Significance of the Referral
This move underscores the Executive's constitutional role in scrutinizing legislation post-Parliament approval to ensure alignment with national priorities. It also highlights the ongoing balancing act between legislative initiatives and preserving a conducive environment for investment and economic growth.
