Transcript Legal Framework on Public procurement

PUBLIC PROCUREMENT OPPORTUNITIES AT
THE NATIONAL AND COUNTY LEVEL
Objectives of presentation
1. Legal framework
2. Women, youth and PWDs entrepreneurship
and self employment
3. Overview of Devolution
4. Opportunities for engagement at the county
level
5. Key challenges
6. Strategies to improve youth participation in
public procurement
Introduction
• Public procurement is not only a budget implementation
strategy but it can also be used to achieve targeted socioeconomic goals.
• The Government is the single largest buyer in any economy. In
Kenya, public procurement deals are estimated to be worth
about Ksh. 1.6 trillion involving supply of goods, services and
works to government offices, projects and in all counties.
• Despite the numerous opportunities available in public
procurement, very few women, youth and persons with
disabilities have the necessary expertise or experience in the
public procurement tendering process to compete effectively
with large established firms with several years’ experience.
• That is why providing youth and women owned businesses with
all the tools necessary to participate in and benefit from public
procurement opportunities is so important because it can
enable them to contribute to economic growth and regeneration
as envisioned in Vision 2030.
Introduction…cont’d
Success is when opportunity meets preparedness
•The President’s directive of reserving 30% of all government
procurement for youth owned enterprises is now a key pillar of
the government’s agenda.
•For women & the youth to be able to participate in and benefit
from public procurement opportunities, they must first
understand what is at stake.
•The government spends approximately 70% of budget on
procurement.
•The expected budget in 2013/2014 is Ksh1.6 trillion, so the
government procurement spend will be Sh1 trillion.
•This means that procurement opportunities reserved for women
owned businesses is estimated at Ksh330 billion in the next
financial year.
Introduction, con’t…
• Ksh. 300 billion per year is humongous. If well directed, it can
drive economic growth through greater youth participation in
public procurement.
• This opportunity can cause a positive ripple effect and create
an economic bushfire and growth revolution unparalleled
anywhere in Africa.
• Millions of women & youth engaged in trade, commerce,
industrial and agricultural activity are eligible.
• Engaging women, youth in public procurement can turn them
from hustlers to shareholders.
• This opportunity can create countless women and youth
African entrepreneurs.
• The greatest challenge is how to transform this vision into a
reality.
Legal Framework
1. Constitution of Kenya, 2010
2. Public Procurement and Disposal Act, 2005.
3. Public Procurement and Disposal Regulations
(Preference and Reservations) Regulations 2011.
4. County Governments Act, 2012
5. MSE Act, 2012
6. Public Procurement and Disposal (County
Governments) Regulations, 2013.
7. Public Procurement and Disposal (Amendment)
Regulations, 2013
Role of women , Youth and PWDs enterprises in
economic growth and regeneration
• The MSE sector is crucial for economic growth and poverty reduction
(as envisaged in Vision 2030).
• Majority of businesses in Kenya fall within the MSE categorization.
• MSES are recognized as vital drivers of growth and innovation.
• Play a vital role in both the economic and social regeneration agendas
in Kenya.
• Micro and small enterprises in the formal and informal small
businesses make an essential contribution to economic growth,
employment and social well being.
• Small firms owned by youth can contribute to the economic and
regeneration plans for the newly established counties.
• Youth business can create wealth and employment opportunities
locally, promote reinvestment in other goods and services offered
locally and stimulate wider prosperity within the country.
Why Promote Women & Youth Entrepreneurship
& Self-Employment?
• Creates employment opportunities for selfemployed women and other young people they
will employ.
• Brings alienated and marginalized women, youth
& PWDs back into the economic mainstream and
gives them a sense of meaning and belonging.
• Helps to address socio-psychological problems
and delinquency arising from joblessness by
equipping youth with new skills and experiences.
Women Engagement…Cont’d
• These skills can then be applied to other challenges
in life hence promoting innovation and resilience in
them
• Promotes revitalization of local communities by
providing valuable goods and services.
• Will capitalize on the fact that women, young and
PWD entrepreneurs will be responsive to new
economic opportunities and trends.
• Can be a source of new jobs and economic
dynamism, and improve youth livelihoods and
economic independence in developing countries.
Opportunities for engagement at county
level
Youth enterprises can provide county governments with
goods, works, and services as per the functions that have
been transferred from the national government:
• Agriculture
• County Health Services
• Cultural activities, public entertainment and public
amenities
• County Transport
• Pre-primary education, village polytechnics, home craft
centers and childcare facilities
• Control of drugs and facilities
• Fire fighting services and disaster management
Key challenges
Lack of awareness and sensitization of the 30%
• Limited access to public procurement and disposal
information e.g., websites ,newspapers ,noticeboards
• Limited market for some goods e.g. information
technology which is highly complex.
Lack of capacity building
• Lack of knowledge eon the procurement process
• Inability to fill out a Standard tender Document
correctly
• Lack of experience in contract management
Challenges
Lack of Tender Financing
• Difficulties in accessing funds i.e., WEDF.
• Lack of financial products tailored for women
• Bid Bond/Tender Security
• Selling tenders by each P.E
Red Tape
• Corruption
• Government offices are centralized in Nairobi
• Women and Youth are ill prepared for the current
opportunities in public procurement.
• Appeal mechanism. i.e., mandatory Kshs.2000 and the cost
Strategies to promote Women, youth and
PWDs Participation in Public Procurement
• Increased education and outreach to train and build the capacities
of women enterprises to ensure they participate and benefit from
government contracts within the next five years.
• Women must be able to access timely, accurate and relevant
information to enable them to make sound decisions.
• Government to ensure appropriate strategies are implemented for
improved business performance.
• Information kiosks placed in women rep offices should be
established and equipped.
• Promote the use of social media and creation of women business
networks and alliances among women & youth groups and other
key stakeholders including suppliers and customers
• Lack of data on procurement is a major constraints so studies are
required to shed more light on how public procurement data can be
generated for policy concerns.
ANY QUESTIONS