Image from ppra.org.pk

Image from ppra.org.pk

The Public Procurement Regulatory Authority of Kenya (the PPRA) has taken a major step forward in ensuring the security, tractability and authenticity of certain products moving in and out of the country.

The agency, which oversees all major public procurement transactions in Kenya, has already joined forces with multinational Swiss security firm; SICPA with a five year contract, signed in 2015, for use of their stamp-based tracking system to track all “hard” alcohol and cigarettes moving along the supply chain, in and out of the country. And they have just reached a deal to extend that service into other areas as well. SICPA’s tracing systems ensures that all taxes and duty fees are paid on every item sold.

To go along with more “sensitive” consumables like spirits or cigarettes, the PPRA have entered into a new five-year, multi-billion-shilling contract on Excise Goods Management System. And SICPA was tasked to do the printing, supply and delivery of excise duty stamps amounting to 12.8 billion for use on all beer, non-alcoholic beverages, water and cosmetics that are bought and sold in Kenya. It’s a move that speaks to both the PPRA placing a great emphasis on control of even relatively “harmless” consumables and to their trust in SICPA and their trademark technologies.

Such a system is crucial for a number of reasons. On a governmental level, SICPA’s tracing systems – the only ones of their kind in the world) – ensure that all taxes and duty fees are paid on every item sold, which adds up to plenty of tax money considering the sheer amount of beverages and cosmetics that are consumed each year.

For consumers and retailers, though, it’s actually no less crucial. Considering the mountains of illicit and counterfeit goods out there, without proper government oversight, regular people can easily land up buying and selling harmful goods from entirely shady sources. Having the government being able to track and trace such basic consumables only helps out the consumer in the long run.

As the PPRA’s Director General, Maurice Juma says, “In our view, it is reasonable to use SICPA Security Solutions SA to do the extra scope of the assignments considering that the bidder’s installed the software for verification of stamps containing the proprietary features.”

In other words the PPRA went with SICPA once again, despite the bids of other security companies, as they are the only ones to offer excise stamps with built in propriety features that specifically allows for greater control of the goods, more efficient tracking and much, much easier identification.

SICPA Security Solutions was originally awarded the five-year deal for use of their stamps with spirits, win and cigarettes according to an agreement, which was signed on April 18, 2013, for a period ending in March 2019. The contract has provision including a security printed revenue stamps amounting to 3.5 billion for 5 years as well as the provision of track and trace software solution in the same period for spirits, wine and tobacco.

This new deal both extends the contract for another five years and to the procurement of a wider variety of goods.