Nairobi, Feb. 2 -- Public agencies face penalties for failing to deduct a new levy when paying suppliers and contractors, exposing taxpayers to losses that could run into millions of shillings.

This follows revelations that several State agencies have not remitted the Public Procurement Capacity Building Levy to the Public Procurement Regulatory Authority (PPRA) despite paying contractors hundreds of millions of shillings during the year ending June 2025.

The National Treasury introduced the levy in late 2023, requiring all agencies procuring goods and services to withhold 0.03 percent of the contract price for remission to the PPRA.

This would see up to Sh750 million worth of cash previously pocketed by suppliers and contractors hande...