During its latest meeting, the Council of Ministers approved a decision authorizing the state-owned joint-stock company “KAYO” to produce and trade weapons, ammunition, technologies, equipment, clothing, and vehicles manufactured or adapted in Albania. The authorization also allows KAYO to provide services for national security structures, their subordinate institutions, and state-owned enterprises established by these bodies.

According to the decision, the goal is to ensure a stable supply of products and services to the relevant security institutions, in line 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.”

KAYO is required to submit to the requesting authorities a list of available products and services at least every six months. All security and defense institutions that require such products or services must first address their requests to KAYO. The company then evaluates whether it can meet the request directly or through its subsidiaries. If KAYO cannot fulfill a request within 30 days, the institution may proceed with public procurement procedures.

Founded in 2024, KAYO inherited the production capacities of the former Mjekës Explosives Plant, the Gramsh Mechanical Plant, and the Poliçan Mechanical Combine. The company operates in the defense and security industry, serving both the Albanian Armed Forces and international markets.

Its main objectives include strengthening Albania’s defense production capacity, meeting the needs of national security institutions, and developing a competitive and integrated defense industry within regional and global markets.