The legal framework of Kenya‘s public procurement system was strengthened with the enactment of the Public Procurement and Disposal Act 2005which came to operation on 1st January 2007 with the publication of the Public Procurement and Disposal Regulations 2006. The Act and the Regulations were enacted for the purpose of establishing procedures for public procurement and disposal by public entities to achieve the following objectives:
- Maximize economy and efficiency
- Promote competition and ensure that competitors are treated fairly
- Promote integrity and fairness of those procedures
- Increase transparency and accountability in those procedures
- Increase public confidence in those procedures and
- Facilitate the promotion of local industry and economic development
In a developing country like Kenya, the public procurement sector is often the largest domestic market. The public procurement system is the bridge between public procurements and the private sector providers. The government has the obligation of providing goods, works and services to meet a variety of citizen needs. These needs or requirements are obtained from either internal government organizations or external sources to the government which is the private sector through the procurement process. The necessity for public procurement law and also clearly defined procurement system arises from the fact that, unlike the private sector, public procurement is a business within a national and political system, whose pillars of strength are integrity, fairness, accountability, competition, transparency, national interest, promotion of local industry and economic development, in addition to economy.
The public procurement system affects many aspects of society including: –
- The procuring entities, which have needs for material support to fulfill their mandated missions.
- The business community of actual or potential suppliers, contractors and consultants who satisfy the procuring entities identified needs.
- The professional associations, academic entities and public interest groups, which have important concerns and views on how public institutions are managed and perform and
- The general public which is more likely to feel satisfied when they know that expenditures by the procuring entities made through public procurement system realize value for money.
- Development partners
The Public Procurement and Disposal General Manual (PPDGM) have been issued by the Public Procurement Oversight Authority (PPOA) for the purpose of:
1. When a State organ or any other public entity contracts for goods or services, it shall do so in accordance with a system that is fair, equitable, transparent, competitive and costeffective.
2. An Act of Parliament shall prescribe a framework within which policies relating to procurement and asset disposal shall be implemented and may provide for all or any of the following–
- Categories of preference in the allocation of contracts;
- The protection or advancement of persons, categories of persons or groups previously disadvantaged by unfair competition or discrimination;
- Sanctions against contractors that have not performed according to professionally regulated procedures, contractual agreements or legislation; and
- Sanctions against persons who have defaulted on their tax obligations, or have been guilty of corrupt practices or serious violations of fair employment laws and practices.
An Act of Parliament to establish procedures for efficient public procurement and for the disposal of unserviceable, obsolete or surplus stores, assets and equipment by public entities and to provide for other related matters was enacted by the Parliament of Kenya as follows:
1. This Act was cited as the Public Procurement and Disposal Act, 2005 and come into operation on 1st January, 2007.
2. The purpose of this Act is to was establish procedures for procurement and the disposal of unserviceable, obsolete or surplus stores and equipment by public entities to achieve
- Providing guidance to public officials who are responsible for the public procurement processes, Auditors, Public Finance Managers, Accountants and Administrators in their everyday work relating to public procurement.
- It is also expected to be useful to all other parties participating in public procurement in one way or other and in particular the suppliers contractors and consultants.
- Playing a pivotal role in development of sector specific manuals that are unique to entities that are performing specialized services with a view of enhancing the quality service delivery to their internal and external customers.
The Manual shall assist participants in public procurement in the application of the Public Procurement and Disposal Act 2015 and the Public Procurement and Disposal Regulations 2006. It will also play a big role in the standardization of the public procurement practices across all procuring entities in Kenya.
In the preparation of this general manual, efforts were made not to provide balanced information and instructions which can be readily understood and followed by all users. The PPDGM was issued under the authority of the Public Procurement and Disposal Act 2005 section 9 ( c) (i). The instructions in the manual are therefore to be complied with by all participants in the public procurement process.
The PPOA shall ensure accessibility of the PPDGM to all institutions and individuals at a reasonable fee. The PPDGM shall be amended from time to time as necessary to accommodate any changes affecting the public procurement system. This being a general manual and due to the very diverse and wide range of works, goods, services and consultancy services procured by public entities, and also the various sizes and organizational structures of public entities, it is appreciated that the manual may be found inadequate by some procuring entities. Procuring entities are therefore encouraged to produce their own internal procurement and disposal manuals suiting their situations and circumstances.
In doing this, they shall ensure that such internal manuals are consistent with the Public Procurement and Disposal Act 2015, the Public Procurement and Disposal Regulations 2006 and this PPDGM. The PPOA shall also be at hand to assist the procuring entities which may require assistance in the production of such internal manuals.
