Kazakhstan strengthens measures to stimulate the participation of domestic producers in public procurement

Kazakhstan strengthens measures to stimulate the participation of domestic producers in public procurement

17.10.2025 08:04:15 214

Public procurement around the world plays an important role in supporting domestic business. Through the system of state orders, small and medium-sized enterprises receive a stable source of sales and the opportunity to develop production. The state, in turn, stimulates localization and the creation of new jobs, providing preferences to domestic suppliers, including price advantages and simplified procedures for participating in tenders. This approach not only contributes to the growth of entrepreneurship, but also reduces the dependence of the domestic market on imports, strengthening the country's economic stability.

The Law of the Republic of Kazakhstan "On Public Procurement" is aimed at creating favorable conditions for domestic entrepreneurs and stimulating domestic production. One of the support tools is the provision of specific preferences for Kazakhstani companies. In particular, priority is provided for the purchase of goods, works and services of domestic origin, which ensures the predominant participation of national manufacturers in competitive procedures. In addition, the law establishes a mandatory advance payment of 30%, which allows businesses to have stable financial resources for the timely fulfillment of obligations.

Also, domestic suppliers are exempted from all types of security both for the execution of the contract and for advance security. In the event of penalties, their amount is reduced to no more than 3% of the total amount of the contract. This approach makes participation in public procurement more affordable and less risky for domestic producers. As a result, these measures not only increase the financial stability of business, but also contribute to the development of industrial potential, employment growth and strengthening the economy of Kazakhstan.
Currently, there are 6 decrees of the Government of the Republic of Kazakhstan, establishing exemptions from the national regime. They cover 4,834 names of goods, works and services, including:
light industry goods (PP RK dated 19.02.2024 No. 99);
goods of mechanical engineering, chemical, construction industry and food products (PP RK dated 16.03.2024 No. 191);
furniture and engineering products (PP RK dated 16.03.2024 No. 190);
software and electronic products (PP RK dated 20.03.2024 No. 207);
blood sampling system (veterinary) (PP RK dated 07.06.2024 No. 447);
A3 and A4 paper (PP RK dated 07.10.2025 No. 824).
In addition, the Law "On Public Procurement" provides for a mechanism for concluding offtake contracts that ensure the guaranteed sale of products of domestic enterprises.
In order to further strengthen support for domestic business on June 24 this year. Amendments were made to the Rules for the implementation of public procurement, providing for:
increase in advance payment from 30% to 50%;
extension of the minimum delivery period from 15 to 60 calendar days;
reduction of payment terms from 30 to 10 working days.

As a result of the measures taken, there has been a significant increase in the volume of cooperation with domestic producers. So, in 2025, 138,702 contracts were concluded for a total of 397 billion tenge, while for the same period in 2024 - 107,658 contracts worth 199 billion tenge.

Source : https://www.gov.kz/memleket/entities/vko-goszakup/press/news/details/1088077?lang=kk