Treasury cuts cost of tendering to spur business

By James Anyanzwa

Kenya: Treasury has lowered the cost of tendering by suppliers and set the tender award period to not more than 30 days from the date of opening.

The State has also outlawed procuring entities from importing items that can be manufactured locally such as furniture, textiles and foodstuffs.

The latest are part of the amendments to the Public Procurement and Disposal Regulations 2013, which seek to strengthen the public procurement process.

“Procuring entities are required to realign all their procurement plans with these provisions and submit the same to the Public Procurement Oversight Authority,” said Maurice Juma, Director General, PPOA.

According to the revised procurement regulations, foreign tenderers shall be required to source 40 per cent of their supplies locally to help promote local industry.

The Government has also abolished fees for tender documents acquired electronically, Expression of Interest (EOI) and pre-qualification.

According to the regulations, fees for tender documents have been reduced from Sh5, 000 to Sh1, 000.

Procuring entities are also under obligation to allocate at least 30 per cent of its procurement of goods to micro enterprises owned by youth, women and persons with disability.

They are also required to ?nance enterprises owned by youth, women or persons with disability by authenticating their noti?cations of tender awards, local purchase/service orders and entering into agreements with the ?nancing institutions with conditions that shall include paying the contracted enterprise through an account opened with the ?nancier.

The procuring entities are also required to make prompt payments for all performed contracts. In case of a delay beyond 30 days from date of receipt of invoice, the procuring entity shall be required to make at least 50 per cent part-payment with a written explanation for the delay.