Challenges for the implementation of Kenya’s preferential public procurement policy

NAIROBI, Kenya - Dec. 6, 2015 - PRLog -- The Kenyan government  amended its procurement rules in 2013 to allow 30% of contracts to be given to the youth, women and persons with disability without competition from established firms

PFMConnect, a public financial management consultancy, worked with Kenyan Federation of Women Entrepreneur Associations (FEWA) to obtain the views of its members on issues associated with the implementation of the government’s preferential public procurement policy.

The women’s responses demonstrated serious concerns with regards to:

• The complexity of the bidding process

• The lack of fairness in the approvals process

• The poor handling of complaints

Respondents considered that SMEs do not get reasonable opportunities to win procurement contracts and that additional measures were required to support women owned businesses. At present only 3% of procurements are being awarded to preferential groups.

The respondents suggested that the Government should simplify the tender documentation requirements for smaller contracts and voiced concern about the debilitating effects of corruption. It is also clear that closer adherence to the rules for making prompt payments to small suppliers would make a vital contribution to their financial viability.

The survey feedback reflects wider community views about the level of corruption in Kenya. The country’s deteriorating ranking in Transparency International’s Corruption Perceptions Index over the last two years from 139^th equal to 145^th equal in 2014 has been extensively reported.  Regular prosecutions for corruption at all levels of public office are clearly an urgent priority.

Most governments are beginning to regard small business development as a route to economic prosperity. PFMConnect considers public sector procurement to be an important tool to promote small business development and urges the Kenyan government to do all it can to encourage the development of this sector.

Read PFMConnect’s blog, now available at http://blog-pfmconnect.com/.

Note: PFMConnect is a consultancy designed support the development of good standards of public financial management in order to improve public service delivery, extend public accountability, encourage local business development and combat corruption. Its work is principally centred on developing countries, working in cooperation with governments and other stakeholders.

For additional information on PFMConnect, please visit our website or contact david.fellows@pfmconnect.com or john.leonardo@pfmconnect.com (Ph: 61 (0) 7 38903086, Skype: johnleoroaming).