31:; to provide procedures for efficient public procurement and for assets disposal by public entities; and for connected purposes". This legislation came into effect on 7 January 2016, repealing the previous Public Procurement and Disposal Act of 2005, and all state organs and public entities within Kenya are required to comply with this law in regard to planning and undertaking procurement,
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procurement regulations that would provide for preferential allotment of contracts and protection for disadvantaged groups. It will also have to pass regulations that would provide for sanctions for non-performing contractors and those found guilty of corruption, tax violations, or labor law violations.
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Public procurement in Kenya is a newer market compared to other
Western countries. Since Kenya was a colonial entity of the United Kingdom until the middle of the 20th century, there was no Kenyan government to conduct public procurement. In the early days of the country there was no regulation of
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Public procurement in Kenya has close relations with
Chinese investments. The Chinese government has invested heavily in building infrastructure in the region, including providing debt for the Kenyan government to hire Chinese firms to build infrastructure projects. A major example of this is the
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methodology, the legal and regulatory framework set up for public procurement in the last decade has strengthened the system, but weaknesses still exist. There are significant challenges to applying the newly set framework and enforcing the laws. Other issues are the disproportionate reliance on
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The Public
Procurement Oversight Authority (PPOA) estimated in 2007 that procuring entities in Kenya were paying around 60% more than prevailing market prices. This signals that there is an noncompetitive procurement market in Kenya. It is estimated that 25% of public expenditure can be saved by
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The Access to
Government Procurement Opportunities (AGPO) law, originally introduced in 2012, set aside 10% of government contracts to be awarded to disadvantaged groups (i.e. enterprises owned by young people, women or persons with a disability) without competition from established firms. This
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Article 227 of the 2010 Constitution of Kenya provided for new standards for public procurement. This article requires public procurement to be set up in a manner that is fair, equitable, transparent, competitive, and cost effective. It also set requirements for the Kenyan parliament to pass
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the public procurement market. Thus, the laws and traditions regarding public procurement are mostly from the 21st century. Until the establishment of the Public
Procurement Oversight Authority in 2005, regulation of public procurement in Kenya was largely done by treasury circulars.
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The Public
Procurement and Disposal Act of 2005 also established the Public Procurement Advisory Board (PPAB), the continuance of the Public Procurement Complaints, Review and Appeals Board as the Public Procurement Administrative Review Board (PPARB).
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Public procurement in Kenya is overseen by the Public
Procurement Oversight Authority (PPOA). The Public Procurement Oversight Authority was established by the Public Procurement and Disposal Act of 2005.
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Opposition figures have criticized the use of public funds to award contracts to
Chinese firms, as these contractors often bring in workers from China, which reduces job opportunities for native Kenyans.
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percentage was increased to 30% in 2013. The AGPO policy also covers micro and small enterprises, local and citizen contractors and citizen contractors in joint ventures with foreign suppliers.
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The law provides for the
National Treasury to be responsible for public procurement and asset disposal policy formulation.
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quotations for procurement, as well as significant differences in procurement methods between public entities.
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is governed by the Public
Procurement and Asset Disposal Act 2015, whose full title is "An Act of
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proper implementation of public procurement laws and regulations in Kenya.
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Public Procurement and Asset Disposal Act 2015, Section 4.2(e),(f)
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215:"Officials who pay late face the sack, Kenyan president says"
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Public Procurement and Asset Disposal Act 2015, Section 7.1
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85:According to a 2007 assessment undertaken using
235:"Assessment of the Procurement System in Kenya"
121:Public Procurement and Asset Disposal Act, 2015
203:Access to Government Procurement Opportunities
68:Access to government procurement opportunities
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259:Kenya Gazette Supplement, 24 December 2015
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27:to give effect to Article 227 of the
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279:Government procurement by country
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163:"Public Procurement in Kenya"
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55:Government authorities
180:"General Information"
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119:Daly and Inamdar,
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219:Supply Management
94:Chinese influence
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242:oecd.org
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238:(PDF)
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87:OECD
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