1. PUBLIC PROCUREMENT OPPORTUNITIES AT THE NATIONAL AND COUNTY LEVEL

2. Objectives of presentation 1.Legal framework 2.Women, youth and PWDs entrepreneurship and self employment 3.Overview of Devolution 4.Opportunities for engagement at the county level 5.Key challenges 6.Strategies to improve youth participation in public procurement

3. Introduction Public procurement is not only a budget implementation strategy but it can also be used to achieve targeted socio- economic goals. The Government is the single largest buyer in any economy. In Kenya, public procurement deals are estimated to be worth about Ksh. 1.6 trillion involving supply of goods, services and works to government offices, projects and in all counties. Despite the numerous opportunities available in public procurement, very few women, youth and persons with disabilities have the necessary expertise or experience in the public procurement tendering process to compete effectively with large established firms with several years’ experience. That is why providing youth and women owned businesses with all the tools necessary to participate in and benefit from public procurement opportunities is so important because it can enable them to contribute to economic growth and regeneration as envisioned in Vision 2030.

4. Introduction…cont’d Success is when opportunity meets preparedness The President’s directive of reserving 30% of all government procurement for youth owned enterprises is now a key pillar of the government’s agenda. For women & the youth to be able to participate in and benefit from public procurement opportunities, they must first understand what is at stake. The government spends approximately 70% of budget on procurement. The expected budget in 2013/2014 is Ksh1.6 trillion, so the government procurement spend will be Sh1 trillion. This means that procurement opportunities reserved for women owned businesses is estimated at Ksh330 billion in the next financial year.

5. Introduction, con’t… Ksh. 300 billion per year is humongous. If well directed, it can drive economic growth through greater youth participation in public procurement. This opportunity can cause a positive ripple effect and create an economic bushfire and growth revolution unparalleled anywhere in Africa. Millions of women & youth engaged in trade, commerce, industrial and agricultural activity are eligible. Engaging women, youth in public procurement can turn them from hustlers to shareholders. This opportunity can create countless women and youth African entrepreneurs. The greatest challenge is how to transform this vision into a reality.

6. Legal Framework 1.Constitution of Kenya, 2010 2.Public Procurement and Disposal Act, 2005. 3.Public Procurement and Disposal Regulations (Preference and Reservations) Regulations 2011. 4.County Governments Act, 2012 5.MSE Act, 2012 6.Public Procurement and Disposal (County Governments) Regulations, 2013. 7.Public Procurement and Disposal (Amendment) Regulations, 2013

7. Role of women, Youth and PWDs enterprises in economic growth and regeneration The MSE sector is crucial for economic growth and poverty reduction (as envisaged in Vision 2030). Majority of businesses in Kenya fall within the MSE categorization. MSES are recognized as vital drivers of growth and innovation. Play a vital role in both the economic and social regeneration agendas in Kenya. Micro and small enterprises in the formal and informal small businesses make an essential contribution to economic growth, employment and social well being. Small firms owned by youth can contribute to the economic and regeneration plans for the newly established counties. Youth business can create wealth and employment opportunities locally, promote reinvestment in other goods and services offered locally and stimulate wider prosperity within the country.

8. Why Promote Women & Youth Entrepreneurship & Self-Employment? Creates employment opportunities for self- employed women and other young people they will employ. Brings alienated and marginalized women, youth & PWDs back into the economic mainstream and gives them a sense of meaning and belonging. Helps to address socio-psychological problems and delinquency arising from joblessness by equipping youth with new skills and experiences.

9. Women Engagement…Cont’d These skills can then be applied to other challenges in life hence promoting innovation and resilience in them Promotes revitalization of local communities by providing valuable goods and services. Will capitalize on the fact that women, young and PWD entrepreneurs will be responsive to new economic opportunities and trends. Can be a source of new jobs and economic dynamism, and improve youth livelihoods and economic independence in developing countries.

10. Opportunities for engagement at county level Youth enterprises can provide county governments with goods, works, and services as per the functions that have been transferred from the national government: Agriculture County Health Services Cultural activities, public entertainment and public amenities County Transport Pre-primary education, village polytechnics, home craft centers and childcare facilities Control of drugs and facilities Fire fighting services and disaster management

11. Key challenges Lack of awareness and sensitization of the 30% Limited access to public procurement and disposal information e.g., websites,newspapers,notice- boards Limited market for some goods e.g. information technology which is highly complex. Lack of capacity building Lack of knowledge eon the procurement process Inability to fill out a Standard tender Document correctly Lack of experience in contract management

12. Challenges Lack of Tender Financing Difficulties in accessing funds i.e., WEDF. Lack of financial products tailored for women Bid Bond/Tender Security Selling tenders by each P.E Red Tape Corruption Government offices are centralized in Nairobi Women and Youth are ill prepared for the current opportunities in public procurement. Appeal mechanism. i.e., mandatory Kshs.2000 and the cost

13. Strategies to promote Women, youth and PWDs Participation in Public Procurement Increased education and outreach to train and build the capacities of women enterprises to ensure they participate and benefit from government contracts within the next five years. Women must be able to access timely, accurate and relevant information to enable them to make sound decisions. Government to ensure appropriate strategies are implemented for improved business performance. Information kiosks placed in women rep offices should be established and equipped. Promote the use of social media and creation of women business networks and alliances among women & youth groups and other key stakeholders including suppliers and customers Lack of data on procurement is a major constraints so studies are required to shed more light on how public procurement data can be generated for policy concerns.

14. ANY QUESTIONS