The Treasury Cabinet Secretary, Njuguna Ndung’u, has introduced a set of reforms aimed at modernizing the government’s procurement processes. These proposed changes, outlined in the Public Procurement and Asset Disposal (Amendment) Regulations 2023, signify an amendment to the existing Public Procurement and Asset Disposal Act of 2015.
The reforms involve allowing the allocation of a single government tender to multiple entities, provided the relevant accounting officer justifies the decision. The accounting officer’s role will also include presenting comprehensive documentation from interested bidders, disclosing estimated contract quantities, and revealing contract values.
Furthermore, the accounting officer will assess bids based on predetermined criteria in the tender document, emphasizing the need for alignment with prevailing market prices for standard goods, works, or services. Once this evaluation is complete, selected bidders will be requested to submit revised tender prices and accompanying documentation.
Allocation of tender contracts will be determined based on the number of qualifying bidders, with fairness and competitiveness in mind. If there are two bidders, the primary recipient will be granted 60% of the contract, with the remaining 40% going to the second bidder. In the case of a price tie between two bidders, both parties will share the tender quantity equally.
For scenarios where more than two but fewer than five bidders are involved, the leading bidder will receive 40% of the contract quantity. If the number of bidders exceeds five, the best-performing bidder will secure 30% of the total contract quantity.
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In cases where the number of qualifying bidders is not disclosed, the accounting officer will distribute the contract quantity proportionately among eligible bidders.
These reforms aim to foster transparency and inclusivity in government procurement, promoting a more competitive and equitable process. To ensure that these proposed changes resonate with public expectations, Kenyan citizens have been invited to provide their feedback and perspectives on these reforms until November 17, 2023.
The Kenyan government has been actively working to encourage the participation of Small and Medium-sized Enterprises (SMEs) in public procurement. Since 2013, the government has allocated 30% of all government procurement for the benefit of Youth, Women, and Persons with Disabilities through the Access to Government Procurement Opportunities (AGPO) program.
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Eligibility for bidding on government contracts or asset disposals is subject to specific criteria, including legal capacity, financial stability, professional qualifications, tax compliance, and a clean record free from corrupt practices or serious violations of fair employment laws.
