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KAYO and Guna Tactical, 17 million euro contract from the state for uniforms, military equipment and vehicles

2026-07-16 12:18:26Biznes SHKRUAR NGA REDAKSIA VOX
Ardi Veliu, administrator of KAYO

The two state-owned companies in the military, Guna Tactical and KAYO, have so far received 17 million euros in funding from the state budget.

According to data from treasury payments received by Open Spending Albania, the companies "Guna Tactical" and "KAYO" have been contracted for a series of services and supplies that reach a total value of around 1.64 billion lek, over 17 million euros.

The operator “Guna Tactical” has been part of three significant transactions, securing a total of 722,182,335 lek. These funds have been allocated mainly to meet the logistical needs of security institutions, including the supply of uniforms and other special clothing for the General Directorate of Prisons as well as clothing for the army.

On the other hand, the company “KAYO” has benefited from an even larger volume of financing, with a total of 919,247,054 lek through four contracts. The focus of expenses for this operator has been more on technical investments and capital, including the purchase of vehicles, other technical means, as well as capital transfers beyond the Military Department in Tirana.

The country's defense and war forces are becoming one of the largest spending units of the state budget. With the latest budget changes, the government increased the budget of the Ministry of Defense by 108 million euros, bringing it to a total of 69.2 billion lek or more than 728 million euros. However, the transparency of funds in the military is not as visible as in other sectors due to the confidentiality in which the sector operates.

Also, a series of public and public-private joint venture companies have been established.

In September last year, the government established the company KAYO sh.a. with state shares. The government allocated the company 150 million lek (about 1.5 million euros) as initial capital for the operation of KAYO, part of a larger package of 440 million lek for the restructuring of the defense sector. The company's object of activity is the design, production, repair, demilitarization, destruction and trade, domestically and abroad, of all types of weapons or parts of weapons. The company pursues economic and commercial interests.

The state-owned company KAYO sh.a. itself has established three new companies in the defense industry. The first is Timak Defence, a private company with 80% of the shares, while 20% are owned by KAYO.

The object of activity of Timak Defence is the production or adaptation of special motor vehicles. KAYO also co-founded a private MKD, which has contributed technology and expertise in the field of weapons and ammunition production. MKD will focus on the production and marketing of small and medium caliber ammunition, according to NATO standards. KAYO is a shareholder in the company Guna Tactical.

This company was established in cooperation with another private entity MSSC, which has 49% of the shares and KAYO, 51%. Guna Tactical will focus on the production and marketing of light weapons and tactical equipment for use by the Armed Forces and security structures, according to its data extracted from the National Business Center./monitor.al

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