1. Self-dealing
This is where an official who controls an organisation causes it to enter into a transaction with the official or with another organisation that benefits the official only.
2. Nepotism
3. Gift from friends who offer services with the person receiving the gifts or from individuals or corporations who do business with the organisation which the gift recipient is employed.
Payment provisions in consultancy services
All the payments to the consultants will be made by the procuring entity in accordance with the agreed payment schedule in the contract of the consultant. However, before any payment is made concurrence will be sought from the procuring unit. A penalty clause may be built in the contract for consultancy for a delay in submission of outputs or non-compliance of contractual obligations. The payment of consultants will be subject to deductions of taxes in accordance with the prescribed taxation policy of the government of Kenya.
The procuring entity is responsible for depositing taxable amount in the government treasury. However, in case the procuring entity is paying the full amount to the consultant firm, arrangement to pay tax to the appropriate authority will be the responsibility of the
consultant concerned. Nevertheless, if the consultant or firm is exempted from any deductions of tax, he or she may have to provide documentary evidence to appropriate authorities. Full or part payment as the case may be will only be processed on the acceptance of the deliverables or output with which the payment is linked.
For the provision of payment a variation could refer to:
- Any revision to the consultancy service which may include addition, omission or substitution
- Any revision to the project which may involve revision of the consultancy service
- Any revision to the parts of the consultancy service already rendered in accordance with the consultancy contract
- Accelerate the program or reschedule the resourcing of the work within the limit of practicality in order to recover any delay on the part of the consultant.
If a consultant considers that there has been material change in the undertaking of the consultancy contract for which a variation should be issued. The consultant by proceeding with any service affected by such an event shall request immediately in writing that the
procuring entity issue a variation. Any such request shall include details of the event and provide supporting documentary evidence and an estimate of the effect on the consultancy contract. Failure to submit a written request for a variation and to provide supporting evidence and estimates within 14 days of the event shall result in the consultant forfeiting any right to receive such variation
and any right to receive such variation and any right concerning the adjustment to the consultancy fee.
The consultant shall also provide the procuring entity with an estimate of any cost or program implications in complying with a variation before commencement.
For the consultants, the following documents will be required:
- Invoice from the consultants duly stamped
- Copy of deliverables –tangible/intangible products in the process of the contract often specified functions/ characteristics of the project intended to be delivered to a client.
- A note from the concerned section of the procuring entity regarding the receipt of the deliverables.
- A quality assurance certificate from the head of concerned department,
On approval, payment will be issued to the consultant or consultancy firm after attaining an acknowledgement receipt. A necessary entry will be made in the relevant register and copies of all supporting documents will be kept on record. Account should be fully satisfied that all terms of the contract have been fully satisfied that all terms of the contract have been fulfilled before handling the payment in full.
