Public procurement in Kenya is governed by a framework of laws and regulations designed to ensure transparency, accountability, fairness, and value for money when public entities purchase goods, works, or services.
Below are the main laws and regulatory institutions governing public procurement in Kenya.

The Constitution of Kenya 2010

The enactment of the Constitution played an important role highlighting the Critical roles that Procurement plays in the activities of the Government systems. Due to its importance, the constitution dedicates article 227 to procurement and it states :

227. Procurement of public goods and services

Part 6. Control of public money

(1) When a State organ or any other public entity contracts for goods or services, it shall do so in accordance with a system that is fair, equitable, transparent, competitive and cost- effective.

(2) An Act of Parliament shall prescribe a framework within which policies relating to procurement and asset disposal shall be implemented and may provide for all or any of the following--

(a) categories of preference in the allocation of contracts;

(b) the protection or advancement of persons, categories of persons or groups previously disadvantaged by unfair competition or discrimination;

(c) sanctions against contractors that have not performed according to professionally regulated procedures, contractual agreements or legislation; and

(d) sanctions against persons who have defaulted on their tax obligations, or have been guilty of corrupt practices or serious violations of fair employment laws and practices.

A reading of Article 227 of the Constitution reveals that the drafters of the document were eager to address rampant mischief and outstanding gaps within public procurement in Kenya.

The Constitution was keen to cast in stone irreducible minimums on procurement to ensure that the legislative framework prescribed by the Act of Parliament to give effect to Article 227 must make provisions for those specific issues. This led to the enactment of The Public Procurement and Asset Disposal Act 2015

The Public Procurement and Asset Disposal Act 2015

The Public Procurement and Asset Disposal Act, 2015 is the main law governing procurement by public entities in Kenya. It aims to promote integrity, fairness, transparency, and accountability in public procurement while ensuring the efficient use of public resources and supporting local industries and disadvantaged groups through programs like AGPO. The Act establishes various procurement procedures such as open tendering, restricted tendering, and request for quotations, requires public institutions to conduct procurement planning, and provides clear procedures for asset disposal. It also defines the roles and responsibilities of procurement entities and oversight bodies to ensure proper regulation and compliance in the procurement process.

Public Procurement and Asset Disposal Regulations, 2020

The Public Procurement and Asset Disposal Regulations, 2020 were enacted to operationalize the 2015 Act.

The Act was enacted to Provide detailed procedural guidelines, specify thresholds for procurement methods, Outline evaluation procedures, Clarify contract management rules and introduce standard forms

Public Finance Management Act, 2012

The Public Finance Management Act, 2012 provides the framework for managing public finances in Kenya, including government spending through procurement. It ensures that public funds used in procurement are properly planned, budgeted, and authorized before any purchases are made. The Act also promotes financial accountability by assigning responsibility to public officers for the lawful and efficient use of public resources, and it links procurement activities to budgetary control to ensure that government spending remains within approved financial limits.

Donor Regulations

Donor procurement regulations refer to the rules and procedures set by international donors or funding agencies to guide how procurement should be conducted when projects are financed using donor funds.

In Kenya, these regulations often apply to government projects funded by development partners such as the World Bank, International Monetary Fund, African Development Bank, or United Nations agencies. Donor procurement rules aim to ensure transparency, fairness, competition, and value for money in the use of donor funds. In many cases, donor regulations may override national procurement laws if the financing agreement specifies that the donor’s procurement guidelines must be followed. These regulations also set standards for tendering procedures, bidder eligibility, evaluation methods, and contract management to ensure funds are used effectively and accountably.

We hope the above has created an understanding of Procurement Governance in Kenya