GOOD PRACTICES IN THE FIELD OF PUBLIC PROCUREMENT

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

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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

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

11. 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.

12. 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

13. 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

14. 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

15. THANK YOU