Applicable laws in procurement of consultancy services

The government of Kenya has reformed the public procurement law to comply with the citizens’ needs and aspirations, the constitution of Kenya 2010, the PPAD 2015 and international best procurement standards.

The procurement of consultancy services has its stipulated method and process for procurement within part 10 of the act. The procuring entity may use a request for proposal in combination with other methods of procurement.

The Act sets out an elaborate interpretation of terminologies. This is given a broad perspective taking into account the devolved system of government. The following aspect among the others have been addressed to cover procurement of consultancy services with
the Act and constitution of Kenya 2010.

1. The guiding principles- in Section 3 of the Act provides guiding principles for public procurement and asset disposal for state organs and procuring entities. The principles are based on values and principles of the constitution. These include maximisation of value
for money, incorporation of local content etc.
2. Public Procurement Governance- The Act has addressed governance well in accordance with international best practices for instance:

  • It vests power to establish policy and systems are structured in the National Treasury.
  • The act established the parliament and PPRA to among other functions to monitor, assess and review the public procurement systems, to ensure they respect the national values and other provisions including article 222 of the constitution on public procurement,
  • It has introduced an internal system under the Administrative Review Board and the Authority

3. General principles of procurement- The act outlines the principles as follows:
All the procuring entities shall develop annual procurement plans which shall be guided and underpinned on an approved budget.
All procurement shall reserve at least 30% to youth, women and people with disability. No procurement shall be commenced unless there is ascertained sufficient cash flow which includes settlement of items such a consultant invoice.
4. Splitting of procurement- The act is clear that no procuring entity may structure procurement as two or more procurement for the purpose of avoiding use of procurement methods except where prescribed.
5. Elasticity of bid- The act defines the capacity of persons to engage in tendering giving prominence to tax compliance. Other requirements include: certificate of registration or incorporation, KRA pin, clearance with relevant regulator bodies. The person should not be fraud or corrupt.

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