Summary of legal framework of procurement in Kenya

Summary of legal framework of procurement in Kenya -...

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Summary of legal framework of procurement in Kenya Introduction Public procurement may be defined as the purchase of commodities and contracting of construction works and services if such acquisition is effected with resources from state budgets, local authority budgets, states foundation funds, domestic or foreign loans guaranteed by the state, foreign aid as well as revenue received from the economic activity of state. Public procurement thus means procurement by a procuring entity using public funds. The items involved in public procurement range from simple items or services, to large commercial projects such as the development of infrastructure including roads, power stations and airports. With government as a service provider, a basic measure of a successful or failed public procurement is manifested through quality and magnitude of the services it provides. Public Procurement Legal Framework is a legal framework encompasses the laws, regulations and policies that are put in place to govern an organization or an activity. The public procurement legal framework clearly covers the whole scope of public procurement (PP), all stages of the procurement process, methods of procurement, ethics and transparency (Thai, 2009). Robert (2003), states that a good PP legal framework is based on the principles of openness and transparency, fair competition, impartiality, and integrity. According to American Bar Association (2000), a sound PP system needs to have good procurement laws and regulations. In practice and theory, PP laws and rules have been considered as one of the most important pillars of a sound procurement system (Thai, 2009). Procurement laws and rules lead to procurement efficiency or inefficiency depending on the type of government and environment within which the system is operated. In a country where no 1
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government democracy exists, the procurement system cannot be transparent and integral (OECD, 2006). Legal Framework Currently includes the Public Procurement and Disposal Act (2005), Public Procurement and Disposal Regulations (2006 and 2009), Supplies Practitioners Management Act (2007) and national case-law. The legal framework must in the near-term address three key areas: inter- agency collaboration, e-procurement and harmonization with other related Acts.
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