GOOD PRACTICES IN THE FIELD OF PUBLIC PROCUREMENT Agnes Mita Deputy Auditor-General Kenya

Good Procurement Practices in Kenya Legal Framework PPOA Planning Price Guides E-procurement Capacity building Challenges Conclusion

Sound Legal Framework Realized through enactment of PP&DA 2005 and 2006 Regulations Regulations provide for; Procurement method to be applied, advertising rules and time limits, content of tender documents and technical specifications tender evaluation and award criteria; procedures for submission, receipt and opening of tenders, and complaints system structure are clearly defined

Sound Legal Framework Cont.. The PP&DA regulations also cover goods, works and services procured using public funds Are widely distributed to procuring agencies Standard tender documents have been developed for goods and services

Establishment of the Public Procurement Oversight Authority Oversees the procurement process in the public sector Development of procurement policy, preparation and distribution of manuals and standard tender documents Training of PE staff on procurement issues

Procurement Planning All procuring entities are required to prepare annual procurement plans as part of the annual budget preparation process The plan must be approved by the Accounting Officer / Board of Directors in case of State owned enterprises

Price Reference Guide Developed by PPOA to guide procuring entities on pricing and therefore avoid overpricing of goods The guide is updated periodically Guide is used as a benchmark for investigations by OAG and other watchdog agencies

E-Procurement Framework A procure to pay module introduced in the IFMIS Re-engineering framework of the Ministry of Finance The re-engineering process targets elimination of all redundant steps in the procurement function

Capacity Building in Procurement PPOA developed a capacity building strategy Staff of the procuring agencies trained on the procurement law The law requires trained professionals to be deployed in the PE procurement Units

Delegation of Procurement Decision Making The procurement law bestows the Tender and Procurement committees of the procurement entities with responsibilities of decisions on procurement.

Challenges in Public Procurement Lack of preparation of procurement plans by key agencies leading to inefficiency in procurement Failure to follow procurement law resulting into agencies buying goods / services at prices over and above prevailing market rates mainly through use of quotations and direct procurement.

Challenges Cont… Flouting procurement law in award of tenders resulting into court cases Inadequate capacity in terms of manpower and skills; Policy makers Regulators Procuring entities

Challenges Cont. Poor procurement records maintained by procurement entities; Lack of tender advertising information Procurement procedures followed not clear Tender award and evaluation criteria missing Lack of progress reports on projects including completion reports

Conclusion Due to challenges still facing the procurement system in the Country, the procurement law is to be amended by the relevant agencies OAG will give input in the amendments

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