Kenya Power awarded contracts worth Sh3.5 billion to youth, women and persons with disabilities in the year to June 2025, marking a more than fourfold increase from the Sh614 million issued a year earlier.
The jump comes amid sustained efforts by the government to expand opportunities under the Access to Government Procurement Opportunities (Agpo) framework.
The tendering structure, introduced in 2013, requires public entities to reserve 30 percent of their procurement budgets for the three special groups.
The Agpo framework seeks to help marginalised suppliers access State supply chains, especially in sectors such as transport services, office consumables, basic materials and general maintenance works.
Due to its national electricity network, Kenya Power is one of Kenya’s largest procuring entities, sourcing transport, repairs, logistics services and operational supplies for its transmission and distribution operations.
“The contracts typically feature supplies for general goods such as stationery and services like cleaning, which require little financing efforts from the tender winners,” Immaculate Karambu, senior corporate communications officer at the utility told Business Daily.
During the review period, youth-owned enterprises received Sh2.2 billion under the programme, while women-owned firms secured Sh1.25 billion and businesses run by persons with disabilities (PWDs) were awarded Sh66.7 million.
Kenya Power said it is enhancing outreach efforts targeting potential bidders, including sensitisation forums and direct engagement with groups covered under the Agpo framework across various procurement categories.
“Last year, we were intentional in meeting and sensitising the youth, women and PWDs about procurement opportunities that exist for them within the company,” said Dr John Ngeno, General Manager Supply Chain and Logistics.
Historically, the firm’s procurement budget has been dominated by large technical items such as transformers, meters and network equipment, limiting Agpo participation to smaller service and supply contracts that require modest capital.
Most Agpo-eligible opportunities at the utility involve the supply of consumables, providing logistics and transport support, meter installation services, minor works and other routine items that small firms can deliver without making substantial investments.
This comes at a time when small enterprises are increasingly relying on State tenders to cushion against a subdued private sector, with many facing cash flow pressures in a weak operating environment.
Kenya Power issued the Agpo allocations in a year when its net profit fell to Sh24.46 billion, marking an 18.66 percent decline from the Sh30.08 billion earned in the previous financial year.
The company declared a dividend of Sh1 per share, totalling to Sh1.95 billion, an increase of Sh585.4 million from the prior year’s total payout of Sh1.36 billion.
The higher dividend follows a period of financial restructuring and cost management within the utility, although operational pressures and constrained revenue growth continue to weigh on overall profitability.
Agpo-related procurement remains a key component of State efforts to broaden economic participation, particularly for groups historically excluded from large tenders and major public contracting opportunities.
Kenya Power’s efforts to strengthen Agpo participation are expected to continue as the utility refines its engagement with eligible groups and raises awareness of the requirements for competitive bidding.
