Why Ruto rejected Public Procurement (Amendment) Bill, 2024

According to Ruto's memorandum, the proposed definition of local and foreign firms is among the key areas of concern

President William Ruto has declined to assent to the Public Procurement and Asset Disposal (Amendment) Bill, 2024, returning it to Parliament for reconsideration over concerns that some of its provisions could undermine Kenya's investment climate and create inconsistencies in public procurement laws.

National Assembly Speaker Moses Wetang'ula informed MPs on Tuesday that the President had exercised his constitutional powers under Article 115(1)(b) of the Constitution to refer the Bill back to the House together with a memorandum outlining his 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 told the House.

Wetang'ula told MPs that the President believes the provisions, if enacted in their current form, could negatively affect Kenya's competitiveness as an investment destination while creating inconsistencies within the public procurement legal framework.

The Speaker said President Ruto had declined to sign the Bill and instead proposed amendments to several provisions, expressing reservations over Clauses 2, 3, 6, 7, 8, 11, 12, 13, 14, 15, 16, 18, 19, 20, 21, 22, 23, 24, 25, 26 and 27.

According to the President's memorandum, the proposed definition of local and foreign firms is among the key areas of concern, with the Head of State arguing that it is impractical and conflicts with the government's objective of attracting foreign direct investment, mobilising private capital and improving the country's business environment.

The amendment Bill had already cleared both Houses of Parliament after being passed by the National Assembly on November 28, 2024, and by the Senate on May 12, 2026, before being forwarded to the President for assent.

Following the referral, Speaker Wetang'ula directed the Departmental Committee on Finance and National Planning to urgently consider the President's recommendations and table its report within the constitutional timelines before the House resumes debate on the Bill.