Egp Kenya

The Public Procurement System in Kenya has evolved from a manual system with no regulations to an orderly legally regulated procurement system. The Government’s Procurement system was originally prescribed in the Supplies Manual of 1978, which was supplemented by circulars that were issued from time to time by the then Ministry of Finance. The reforms to the Government Procurement System led to the enactment of the Public Procurement and Disposal Act (PPDA), 2005 which sought to promote economy, efficiency, integrity, competition, transparency, public confidence and to strengthen oversight and controls in the public procurement system.

Public procurement reforms have been undertaken within the wider context of public financial management reforms. In 2003 the government implemented the Integrated Financial Management Information System (IFMIS) in the management of public finance. The IFMIS contained three modules that is; purchasing, payables and general ledger to address accounting and budgeting business processes. In 2011, the Government undertook the re-engineering of IFMIS to make it more robust which brought in more modules that addressed revenue to cash, plan to budget, procure to pay among others.

The Government continues to undertake reforms for more effective and efficient public finance management; the legal and regulatory framework was further strengthened through the promulgation of the Constitution of (COK) 2010. Article 227 of theCOK, 2010 provides that a public procurement system be set up in a manner that is fair, equitable, transparent, competitive and cost – effective. Following the promulgation of theCOK,2010, the Public Procurement and Asset Disposal Act, 2015 (PPAD Act, 2015) was enacted to operationalize Article 227 of the Constitution. The attendant Public Procurement and Asset Disposal Regulations, 2020 (PPADR, 2020) was gazetted to operationalize the Act. The PPADA, 2015 and its attendant Regulations,2020 comprehensive outlines the procedures for e-procurement and use of ICT in public procurement and asset disposal processes.

Section 7 (c) of the PPADA, 2015 has mandated The National Treasury to design and prescribe an efficient procurement management system for the National and County Governments to ensure transparent procurement and asset disposal as contemplated by Article 227 of the Constitution. Further Section 7(f) requires the National Treasury to carry out general research, develop and promote electronic procurement strategies and policies in both the National and County governments including State Corporations.