BY JOSES SAREN
The Ministry of Rural Development (MRD) has signed legally binding Preferred Supplier Arrangement (PSA) contracts with 83 private companies, completing a qualification process that clears the way for full implementation of the 2026 Constituency Development Funds (CDF) budget.
According to a statement from MRD, 39 of the companies are indigenous-owned and 44 are foreign-owned, a rise in indigenous business participation compared to previous years. The PSA qualifies the companies to supply materials, equipment, goods and services to the government through the 50 constituencies.
The contracts are valid for one year and are governed by Sections 73 and 74 of the Public Financial Management (PFM) Act 2013 and Section 28 of the CDF Act 2023, the statement said.
MRD said the process will be monitored closely alongside the Ministry of Finance and Treasury (MoFT) to ensure compliance with the PFM Act, the SIG Procurement Manual and the CDF Act.
The statement added that the PSA underwent a rigorous selection and evaluation process, including physical site inspections carried out by the MRD Technical Evaluation Committee (TEC), followed by scrutiny from MoFT and the Central Tender Board (CTB) before contracts were awarded.
MRD said it secured fixed prices for items based on prevailing market rates to ensure value for money and consistent quality across 12 categories, including hardware and building materials, marine and fishing equipment, plant and motor vehicles, and agriculture equipment.
The CTB is the awarding authority, while MRD prepares the contracts, which are signed by the Permanent Secretary of MoFT as CTB chairman, the Permanent Secretary of MRD as chairman of the Ministerial Tender Board, and the suppliers. The list of qualified suppliers will be published once contract documentation is finalised.
The PSA tender was advertised in January 2026, drawing 86 bids. Three companies were disqualified for failing to meet minimum technical requirements under Section VI of the tender documentation.
Funding for the 2026 PSA comes from the MRD/SIG Development Budget. The government’s total support to the CDF program is $250 million, shared equally among the 50 constituencies at $5 million each — $3.2 million processed through the PSA and $1.8 million provided as direct grants. Under Section 26 of the CDF Act 2023, funding is split 40 percent for the Productive and Resources Sector, and 20 percent each for Essential Services, Cross-Sectoral/Inclusivity/Gender initiatives, and Social and Cultural Obligations.
Photo credit: MRD
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