At its latest meeting, the Council of Ministers approved authorization for the state-owned company “KAYO” to engage in the production and trade of weapons, ammunition, equipment, and other security-related services for law enforcement, security agencies, and other related state-owned companies operating in the defense and security sector.

The decision aims to ensure a stable supply of products and services that can be used by the relevant authorities.

According to the government decision, KAYO must submit every six months a list of the products and services it offers—either directly or through subsidiaries it establishes. This list will be forwarded to the requesting authorities.

Agencies or institutions that require such products or services must submit formal requests, specifying the technical requirements and the intended use.

If KAYO is unable to meet the submitted requests, the respective authorities are allowed to proceed with procurement in accordance with the current public procurement legislation or with the specific regulations governing defense and security procurement.

The decision was adopted pursuant to Law no. 88/2024, which established the state-owned company for the production and trade of weapons and ammunition, and it enters into force immediately upon publication in the Official Gazette.

Decision Highlights

Purpose:

To authorize the state-owned joint-stock company “KAYO” to produce and trade weapons or their components, ammunition, technologies, equipment, clothing, and other tools manufactured or adapted within the territory of the Republic of Albania. The company is also authorized to provide services for security structures, agencies under their authority, and other state-owned joint-stock companies created by these entities.

Implementation Rules:

• KAYO shall supply products and services produced or adapted in Albania in accordance with Law no. 88/2024, “On the establishment of the state-owned company for the production and trade of weapons, ammunition, equipment, and military technologies.”
• Every six months, KAYO must deliver to the requesting authorities a list of available products and services, either directly or through its subsidiaries.
• All requesting authorities are obliged to address KAYO for any required goods or services falling within its scope.
• Requests must be in writing, accompanied by a project proposal detailing the purpose, legal references, technical specifications, implementation methods, and project value.
• KAYO shall respond to each request, indicating whether it can fulfill it directly or through affiliated entities.

If KAYO cannot meet the technical specifications or fails to respond within 30 days, the request is considered rejected, and the authorities may proceed with regular public or defense procurement procedures.

If KAYO can fulfill the request, the authorities may enter direct negotiations with the company to conclude an agreement for the supply of the required goods or services.

All state structures operating in the defense and security sectors, along with their dependent agencies and state-owned companies, are charged with implementing this decision.

The decision enters into force immediately and will be published in the Official Gazette.