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 https://www.egpkenya.go.ke/
Why Electronic Government Procurement System (e-GP Kenya)
Government around the world for several years have adopted information communication technology and the internet to improve service delivery and increase access to information electronically, practices referred to as e-Government initiatives. Such include electronic procurement which is an initiative towards enhancing transparency, accountability, establish an open marketplace for procurement needs, and to support the introduction of procurement reforms to better manage and monitor public procurement activities. Beneficiaries include not only governments and suppliers but also the public at large in having access to transparent information on the public expenditure of taxpayers’ money.
Benefits e-GP Kenya is offering:
The legal requirement for women, youth and persons with disabilities to access 30% of Government Procurement opportunities is being implemented within the context of the Access to Government Procurement Opportunities (AGPO) program which was officially launched by H.E President Uhuru Kenyatta on 16th October, 2013 in Nairobi County.
The AGPO program is founded on the Constitution of Kenya, 2010 Article 227 on the fair, equitable, transparent and cost-effective public procurement of goods and services, Article 55 on affirmative action and, the Public Procurement and Asset Disposal Act, 2015.
What is the aim of the AGPO Program?
The aim of the AGPO program is to facilitate the enterprises owned by women, youth and persons with disabilities to be able to participate in Government opportunities. This is made possible through the implementation of the legal requirement that 30% of Government procurement opportunities be set aside specifically for enterprises owned by these groups. As a result, the program is aimed at empowering them by giving them more opportunities to do business with Government.
HOW TO JOIN ACCESS TO GOVERNMENT PROCUREMENT OPPORTUNITIES
Step 1 – Register a business enterprise at the Attorney General’s Office in the form of a sole proprietorship business, partnership business or a limited company . The enterprise owned by youth, women or persons with disabilities shall be a legal entity that is registered with the relevant government body; and has at least seventy percent membership of youth, women or persons with disabilities and the leadership shall be one hundred percent youth, women and persons with disabilities, respectively.
Step 2 – If business is a partnership, get a partnership deed from a lawyer, if it is a limited company, obtain a CR12 from the registrar of of Companies (system generated soft copy).
Step 3 – Acquire a PIN and tax compliance/ tax exemption certificate from the Kenya Revenue Authority website
Step 4 – Acquire all required certifications from professional bodies and authorities such as: National Construction Authority, Insurance Regulatory Authority, Institute of Certified Public Accountants of Kenya, Law Society of Kenya, National Council for Persons with Disabilities, National Environmental Management Authority, Energy Regulatory Commission of Kenya and all other authorized bodies. Step 5 – Open a bank account for the business and acquire a bank reference from the bank.
Step 6 – Access the website www.agpo.go.ke and register online or visit your nearest Huduma Center for assistance