Mission of the Defense Industry Agency

Regulates, supervises and promotes the production, trade, transportation, storage, as well as research and development of military armaments in accordance with national and international standards, with the aim of strengthening the defense capabilities and economic development of the Republic of Albania.

Main tasks of the Defense Industry Agency:

1. Regulation and Licensing
Issues, renews, suspends, and revokes licenses for entities operating in the production, trade and development of military armaments.
It establishes standards and criteria for testing, certification, and safety of military products before tthey are released to the market.

2. Monitoring and Law Enforcement
Monitores and ensures the compliance of licensed entities with international laws and obligations.
Conducts regular inspections to ensure the respecting of safety, quality and ethical standards.
Adopts administrative measures and imposes sanctions on lawbreakers.

3. Registration and Tracking
Keeps and updates the register of licensed entities and that of the military armaments produced, traded, and stored.
Implements weapons marking and tracking systems to ensure a supply chain control secure.

4. National and International Cooperation
Coordinates with state institutions and international partners for Defense Industry supervision.
Strives to enter into international cooperation agreements to exchange information and best practices and strengthen supervision capabilities.
Participates in international councils, initiatives and forums related to development and cooperation on Defense Industry.

5. Promoting Innovation and Technology
Supports the research and development of new technologies in the defense sector.
Collaborates with the Security Defense Innovation Center and other stakeholders to develop technological capabilities.

6. Security, Transparency and Accountability
Publishes Transparency  and Accountability Reports and Analyses on the state of the Defense Industry.
Keeps a register of entities excluded for violations of the law and national security.
Promotes ethical practices and high security standards in the defense sector.

7. “One-Stop Shop” Function
Acts as a unified center for handling issues, requirements and problems in the defense sector industry.
Provides support to licensed entities and facilitates inter-institutional coordination.

KAYO Ltd.

The State Company KAYO Ltd. has been establishedi n accordance with Law No. 88/2024 "On the Establishment of the State Company for the Production and Trade of Weapons, Ammunition, Military Equipment, and Technologies".

Its activity include the design, production, repair, demilitarization, destruction, and trade, both domestic and international, of all types of weapons or weapon parts, including military weapons, ammunition, military technologies, and equipment, as well as any activity related to these functions, in alignment with National Security and Defense Policies and the strengthening of military capacities.

KAYO Ltd. has absorbed the activities of the State Enterprises (Mjekës, Poliçan, and Gramsh).

The state-owned company will have all its legal and financial capacities to function in line with the strategic objective of modernizing the Defense Industry, in compliance with NATO standards. It is not only necessary to increase Albania’s defense capabilities but also to strengthen the country's strategic position in the region and on the international scene in the field of security, as well as to promote economic development.