Public procurement legislation offer preferences for locally-owned companies. The law mandates that, subject to availability and realization of international or local standards, preference must be given to manufactured articles, materials, or supplies wholly or partially mined and produced in Kenya, or assembled in Kenya, with preference also extended to firms where Kenyans hold over fifty-one percent of shares. Such preferences apply for the procurement goods, services and works.
"2. Interpretation
In this Act, unless the context otherwise requires—[...]
"citizen contractor" means a person or a firm wholly owned and controlled by persons who are citizens of Kenya;[...]
"reservations" means exclusive preference to procure goods, works, and services set aside to a defined target group of tenderers within a specified threshold or region;
[...]
3. Guiding principles
Public procurement and asset disposal by State organs and public entities shall be guided by the following values and principles of the Constitution and relevant legislation—[...]
(j) promotion of citizen contractors.
[..]
86. Successful tender
(1) The successful tender shall be the one who meets any one of the following as specified in the tender document—
(a) the tender with the lowest evaluated price; [...]
(2) For the avoidance of doubt, citizen contractors, or those entities in which Kenyan citizens own at least fifty-one per cent shares, shall be entitled to twenty percent of their total score in the evaluation, provided the entities or contractors have attained the minimum technical score.
[...]
89. International tendering and competition
If there will not be effective competition for a procurement unless foreign tenderers participate, the following shall apply— [...]
(f) where local or citizen contractors participate they shall be entitled to preferences and reservations as set out in section 155.
[...]
PART XII – PREFERENCES AND RESERVATION IN PROCUREMENT
155. Requirement for preferences and reservations
(1) Pursuant to Article 227(2) of the Constitution and despite any other provision of this Act or any other legislation, all procuring entities shall comply with the provisions of this Part.
(2) Subject to availability and realisation of the applicable international or local standards, only such manufactured articles, materials or supplies wholly mined and produced in Kenya shall be subject to preferential procurement.
(3) Despite the provisions of subsection (1), preference shall be given to—
(a) manufactured articles, materials and supplies partially mined or produced in Kenya or where applicable have been assembled in Kenya; or
(b) firms where Kenyans are shareholders.
(4) The threshold for the provision under subsection (3) (b) shall be above fifty-one percent of Kenyan shareholders.
(5) Where a procuring entity seeks to procure items not wholly or partially manufactured in Kenya—
(a) the accounting officer shall cause a report to be prepared detailing evidence of inability to procure manufactured articles, materials and supplies wholly mined or produced in Kenya; and
(b) the procuring entity shall require successful bidders to cause technological transfer or create employment opportunities as shall be prescribed in the Regulations.
[...]

157.	Participation of candidates in preference and reservations
(1) Candidates shall participate in procurement proceedings without discrimination except where participation is limited in accordance with this Act and the regulations.
(2) Subject to subsection (8), the Cabinet Secretary shall, in consideration of economic and social development factors, prescribe preferences and or reservations in public procurement and asset disposal.
(3) The preferences and reservations referred to in subsection (2) shall—
(a) be non-discriminatory in respect of the targeted groups;
(b) allow competition amongst the eligible persons; and
(c) be monitored and evaluated by the Authority.
(4) For the purpose of protecting and ensuring the advancement of persons, categories of persons or groups previously disadvantaged by unfair competition or discrimination, reservations, preferences and shall apply to—
(a) candidates such as disadvantaged groups;
(b) micro, small and medium enterprises;
(c) works, services and goods, or any combination thereof;
(d) identified regions; and
(e) such other categories as may be prescribed.
(5) An accounting officer of a procuring entity shall, when processing procurement, reserve a prescribed percentage of its procurement budget, which shall not be less than thirty per cent, to the disadvantaged group and comply with the provisions of this Act and the regulations in respect of preferences and reservations. [...]
(8) In applying the preferences and reservations under this section—
(a) exclusive preferences shall be given to citizens of Kenya where—
(i) the funding is 100% from the national government or county government or a Kenyan body; and
(ii) the amounts are below the prescribed threshold;
(iii) the prescribed threshold for exclusive preference shall be above five hundred million shillings;
(b) a prescribed margin of preference shall be given—
(i) in the evaluation of tenders to candidates offering goods manufactured, assembled, mined, extracted or grown in Kenya; or
(ii) works, goods and services where a preference may be applied depending on the percentage of shareholding of the locals on a graduating scale as prescribed.
(9) For the purpose of ensuring sustainable promotion of local industry, a procuring entity shall have in its tender documents a mandatory requirement as preliminary evaluation criteria for all foreign tenderers participating in international tenders to source at least forty percent of their supplies from citizen contractors prior to submitting a tender.[...]" (Public Procurement and Asset Disposal Act No 33 of 2015, as amended)
Public Procurement and Asset Disposal Act No 33 of 2015, as amended
[<a href="http://kenyalaw.org:8181/exist/kenyalex/actview.xql?actid=CAP.%20412C">Act</a>]