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Kenya's services market is on the rise, with a projected revenue of US$58.8 billion by 2028. This represents a growth rate of 5.2%, driven by factors such as:
Increased access to technology and internet
Growing middle class with rising disposable income
Investment in infrastructure and development projects
Government support for the services sector
The services sector now accounts for over 60% of Kenya's GDP, highlighting its crucial role in the economy.
Government Invests in Services: Public Procurement in Kenya
The Kenyan government is a major player in the services market, with a total expenditure of US$2.3 billion on services in 2022. This is expected to grow to US$3.1 billion by 2028, representing a 4.7% annual increase.
The government's focus on infrastructure development, education, healthcare, and technology is driving the demand for services in these areas.
The Kenyan government primarily procures the following services:
Construction and engineering services: for infrastructure development projects like roads, bridges, and buildings.
IT and telecommunication services: to improve government efficiency and communication.
Education and training services: to equip the workforce with the necessary skills.
Healthcare services: to provide quality healthcare to all citizens.
Professional and consulting services: for project management, policy development, and research.
Navigating the Kenyan government procurement landscape involves understanding the key authorities:
National Treasury: Oversees public finances and approves government budgets.
Public Procurement Regulatory Authority (PPRA): Regulates and oversees government procurement processes.
State Department for Public Service: Manages government human resources and procurement of services.
Sector Ministries: Responsible for specific government functions and procurement within their respective areas.
Some of the top winners of Kenyan government services procurement include:
Safaricom: A leading telecommunications company providing network infrastructure and technology solutions.
Equity Bank: A major financial institution offering banking and financial services.
KenGen: The national electricity generation company providing power infrastructure and energy solutions.
Bamburi Cement: A manufacturer and supplier of cement for construction projects.
KCB Group: A major financial institution offering banking and financial services.
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