The Public Procurement Capacity Building Levy (CBL)
To ensure the integrity, efficiency, and sustainability of Kenya’s public procurement system, the Public Procurement Regulatory Authority (PPRA) operationalized the Public Procurement Capacity Building Levy in 2024.
The levy is paid by the supplier on all procurement contracts signed with a Procuring Entity.
This levy is a strategic investment aimed at enhancing the skills and technical competencies of all stakeholders—including public entities and private suppliers—participating in the public procurement and asset disposal ecosystem.
How is it Collected?
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Deduction at Source: The Procuring Entity is responsible for deducting the 0.03% levy from the contract price at the time of making payment to the supplier.
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eCitizen Integration: Remittance is made directly to the PPRA through eCitizen. Alternative payment arrangements can be made after seeking guidance from the PPRA Finance Section.
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Progressive Remittance: For multi-year or milestone-based contracts, the levy is determined on the total contract price but deducted and remitted progressively as payments are made.
Exemptions: The levy does not apply to contracts that are fully funded by development partners.