LPO Financing in Kenya: How to Fund Your Government Contract Without Waiting 90 Days to Get Paid (2026)

You found the tender. You wrote a strong proposal. You submitted on time. The evaluation went your way. The notification of award came through.

And then you hit the wall that stops most Kenyan SMEs from scaling in government procurement.

You won the contract — but you don't have the money to execute it.

The government wants delivery in 30 days. But government payment terms are 60–90 days from invoice. Which means you need to finance the entire contract out of your own pocket for 2–3 months before a single shilling hits your account.

If your contract is KES 500,000 for office supplies, you need KES 500,000 in working capital right now — and then wait for payment. Most SMEs don't have that. So they either pass on contracts they could win, or they take them and struggle through.

There's a better way. It's called LPO financing, and this guide covers everything you need to know.