Insurance Requirements for Government Tenders in Kenya — What Every SME Must Know (2026)

You did everything right. Your technical proposal was thorough. Your financials were clean. Your AGPO certificate was up to date. Your KRA PIN certificate was valid.

And then the evaluation report came back: "Non-compliant — missing professional indemnity insurance."

Knocked out of a KES 2M tender because of one insurance certificate. This happens to hundreds of Kenyan SMEs every year.

Insurance requirements are one of the most common reasons suppliers fail the mandatory compliance stage. Evaluators check these first — before they even look at your technical or financial bid. If you're missing an insurance document, you're out before the game begins.

This guide covers every insurance type you might encounter in Kenyan government tenders, what it covers, how to get it, and how to know when you actually need it.

Under the Public Procurement and Asset Disposal Act (PPADA) 2015, procuring entities can require suppliers to demonstrate they carry adequate insurance as part of the mandatory evaluation criteria.