Public agencies face fines over levy on State contractors

Auditor General Nancy Gathungu speaks during a meeting with the Budget Committee at English Point in Nyali, Mombasa County on February 4, 2025.

Photo credit: Wachira Mwangi | Nation Media Group

Public agencies face penalties for failing to deduct a new levy when paying suppliers and contractors, exposing taxpayers to losses that could run into millions of shillings.

This follows revelations that several State agencies have not remitted the Public Procurement Capacity Building Levy to the Public Procurement Regulatory Authority (PPRA) despite paying contractors hundreds of millions of shillings during the year ending June 2025.

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