The Public Procurement System in Kenya has evolved from a crude system with no regulations to an orderly legally regulated procurement system. The Government’s Procurement system was originally contained in the Supplies Manual of 1978, which was supplemented by circulars that were issued from time to time by the Treasury. The Director of Government Supply Services was responsible for ensuring the proper observance of the provisions of the Manual. The Manual created various tender boards for adjudication of tenders and their awards.
A review of the country’s public procurement systems was undertaken in 1999 and established that:
- There was no uniform procurement system for the public sector as a whole
- It did not have sanctions or penalties against persons who breached the regulations in the Supplies Manual, other than internal disciplinary action. Consequently application of the rules was not strict and many of the norms were not followed
- The Supplies Manual did not cover procurement of works
- The dispute settlement mechanisms relating to the award procedures as set out in the Manual were weak and unreliable for ensuring fairness and transparenc
- Records of procurement transactions in many cases were found to be inaccurate or incomplete or absent, which led to suspicions of dishonest dealings at the tender boards.
The systems had other institutional weaknesses that not only undermined its capacity for carrying out their mandates effectively but also led to a public perception that the public sector was not getting maximum value for money spent on procurement.
In view of the above shortcomings it was found necessary to have a law to govern the procurement system in the public sector and to establish the necessary institutions to ensure that all procurement entities observe the provisions of the law for the purpose of attaining the objectives of an open tender system in the sector. Consequently the establishment of the Exchequer and Audit (Public Procurement) Regulations 2001 which created the Public Procurement Directorate (PPD) and the Public Procurement Complaints, Review and Appeals Board (PPCRAB).
The PPD and PPCRAB, though largely independent in carrying out their activities, had been operating as departments in the Ministry of Finance on which they relied for staff, facilities and funding. Since these institutional arrangements have a potential for undermining the impartiality of these bodies in the long run it was found necessary to create an oversight body whose existence was based on a law. The Public Procurement and Disposal Act, 2005 was thus enacted and it become operational on 1st January, 2007 with the gazettement of the Public Procurement and Disposal Regulations, 2006.
The Public Procurement and Disposal Act, 2005 created the Public Procurement Oversight Authority (PPOA), the Public Procurement Advisory Board (PPAB) and the continuance of the Public Procurement Complaints, Review and Appeals Board as the Public Procurement Administrative Review Board (PPARB). The PPAB and PPARB are autonomous bodies.
- The PPOA is mandated with the responsibility of:
- Ensuring that procurement procedures established under the Act are complied with;
- Monitoring the procurement system and reporting on its overall functioning
- Initiating public procurement policy
- Assisting in the implementation and operation of the public procurement system by:
- preparing and distributing manuals and standard tender documents,
- providing advice and assistance to procuring entities, and
- develop, promote and support training and professional development of staff involved in procurement
A vibrant procurement and disposal system for attainment of Kenya’s Vision 2030.
To facilitate access to procurement opportunities through enabling regulation that fosters value for money for national socio-economic development.
PPOA, in its endeavor to realize its vision and mission, upholds the following core values:
PPOA will endeavor to act in a transparent, predictable and understandable manner to its stakeholders.
PPOA will deal with its stakeholders in a just and impartial manner.
PPOA will endeavor to satisfy its customers’ needs.
PPOA staff will embrace togetherness and team spirit in carrying out their duties. Synergy among the staff members shall be highly valued for better achievement of objectives.
PPOA will endeavor to be impartial in carrying out its mandate
PPOA board and staff members will strive to be professional, honest, fair and ethical at all times.
In the performance of their duties, PPOA Boards and staff shall be bold in the execution of their duties and shall be prepared to mitigate any risks or challenges.
The Charter is an undertaking or covenant made to stakeholders about the services they expect to get from the Authority while discharging its mandate. The Charter is meant to create awareness on our role as an Authority, give insights on our core activities and values, provide information on the range of services we offer, the standards we have set, stakeholders’ expectations, avenues for remedy where services fall short of standards and continuous improvement and feedback in pursuit of stakeholders satisfaction and excellence in our operations.
This Service Charter is a working tool that is meant to facilitate better understanding of our services including putting our organization and our stakeholders at the forefront. It should therefore be used alongside other operational legal instruments such as the Public Procurement and Disposal Act, 2005, the Regulations, 2006 and any other relevant laws and operational guidelines and procedures as may be laid down by the Authority and the Government from time to time.
The Public Procurement Oversight Authority is established under an Act of Parliament, the Public Procurement and Disposal Act, 2005. Among other things, the Act established a semi-autonomous oversight body, the Public Procurement Oversight Authority (PPOA), Public Procurement Oversight Advisory Board (PPOAB) and the Public Procurement Administrative Review Board (PPARB). The PPOA is among other responsibilities charged with ensuring that all procurement entities observe the provisions of the law.
This strategic plan provides a roadmap for addressing challenges facing the public procurement system and PPOA as an institution. The strategic themes identified for the planning period are: compliance; capacity building; regulatory framework; institutional capacity and corporate image.
For each identified strategic issues, appropriate objectives have been stated. The strategic objectives are to:
1) To ensure compliance with the Public Procurement and Disposal Act, 2005; Regulations, 2006; and PPOA guidelines;
2) To build capacity of persons and institutions involved in public procurement;
3) To strengthen the policy, legal, regulatory; and research and development framework for public procurement and disposal system;
4) To uphold fairness and promote public confidence in the public procurement system;
5) To improve human resource management, systems and infrastructure to provide quality service to stakeholders;
6) To enhance the use of technology in order to increase efficiency and effective service delivery;
7) To enhance financial sustainability;
8) To improve the image of the Authority and enhance customer service; and
9) To incorporate the risk management culture within the Authority.
Appropriate strategies and activities have also been identified for each objective. An implementation plan which details for each objective, the strategies, activities, implementing actors, timelines, resources, expected output and the indicators, has been provided. In addition, a resource mobilization mechanism is presented in chapter seven. During the planning period, the PPOA will require approximately Kshs. 6.9 billion. The institutional structure and a monitoring and evaluation framework for ensuring successful implementation of the strategic plan has been provided in chapters six and eight respectively.