Invitation to Tender (ITT): How Government Procurement Works in Kenya

An Invitation to Tender (ITT) is an announcement from a government organization (ministry, county, state corporation) that it needs to buy something, goods, services, or construction. The ITT invites businesses to submit bids. The government evaluates bids, picks the lowest qualified bidder, and awards the contract.

The ITT is required by Kenya's Public Procurement and Asset Disposal Act (PPADA). Government must announce tenders publicly to ensure fair competition. This protects taxpayers, competitive bidding keeps prices fair. It also means any business (not just government favorites) can compete.

The ITT includes: what the government is buying, the quantity, expected price range, deadline for bids, required qualifications, evaluation criteria, and the contact person. A business reads the ITT, prepares a bid proposal, and submits before the deadline. Simple in theory; complex in practice.

The process has specific steps and timelines.

1. 1

   Step 1: Find ITTs (ongoing)

   ITTs are advertised on the PPDA portal (www.ppoa.go.ke), ministry websites, and newspaper notices. Kenyan traders also use "Tender Yetu" (www.tenderyetu.co.ke), a private website that aggregates tenders. Subscribe to email alerts for tenders in your industry so you don't miss deadlines.

2. 2

   Step 2: Confirm you're eligible

   Read the ITT carefully. Check: (1) Do you have business registration? (2) Do you have a KRA PIN? (3) Do you have a bank account? (4) Can you meet the required qualifications? (5) Can you deliver by the deadline? If "no" to any, don't bid. Unqualified bids are rejected.

3. 3

   Step 3: Prepare your bid

   The ITT specifies what to include. Typically: (1) Company information and registration documents, (2) Financial statements (proof you can finance the contract), (3) Technical proposal (how you'll deliver), (4) Price quote (your bid amount), (5) References from previous clients. Spend time on this, poor bids lose.

4. 4

   Step 4: Submit before the deadline

   ITTs specify submission: some require physical copies at a government office by a specific time and date; others allow email. Late submissions are rejected. Deadline means deadline, 5 minutes late and you're out. Submit early to avoid last-minute issues.

5. 5

   Step 5: Await evaluation (2-4 weeks)

   Government opens bids on the deadline date at a public event (called "bid opening"). Your price is read aloud. Evaluation takes 2-4 weeks. The government checks: is the bid technically compliant? Is the price reasonable? Is the bidder qualified? Results are announced publicly.

6. 6

   Step 6: Negotiate contract (1-2 weeks)

   If you're the lowest qualified bidder, the government contacts you. You negotiate final contract terms, sign, and receive a purchase order (PO). The PO tells you when and how to deliver. From PO to payment can take 1-3 months.

Winning a tender is exciting but financially risky if you're not prepared. Government payment can be slow (30-90 days after delivery). If you need cash to buy materials before being paid, you can strain your business. Veira helps you track: how much you've spent on this tender, how much you've invoiced, how much is unpaid. This shows your cash flow and helps you plan working capital.

Veira also helps you track costs per unit. If a tender requires 500 units at KES 6,400/unit, you need to ensure each unit costs less than that (or you lose money). Veira tracks your unit economics, so you can bid confidently knowing your actual costs.

For government tenders, you'll need audited financial statements or at least clean books. Veira keeps your books organized and audit-ready, making government compliance easier and increasing your chances of winning tenders.