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Public Procurement and Finance KNEC Notes

Institution: college/university

Course: bcom/business mgt

Content Category: Lecture Notes

Posted By: PENTAMRK

Document Type: PDF

Number of Pages: 59

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Summary

Public Procurement and Finance KNEC Notes

LESSON ONE
INTRODUCTION TO PUBLIC PROCUREMENT
Chapter objectives:
By the end of this chapter, the learners should;
1. Understand what is entailed in public procurement
2. Learn about stages of public procurement since independence
• Explain an ideal public procurement
1. Describe values of to be observed in procurement
INTRODUCTION
Public procurement is the process which public entities contract for acquisition or supply of
goods, services or works. Public procurement in Kenya has undergone major reforms to the
current legal framework of Public Procurement and Disposal Act (PPDA) of 2005. In the various
reforms, the major concerns were those of improving efficiency and effectiveness, promoting
competition, trying to alleviate corruption levels in procurement activities, enhancing
standardized procedures among others. This has further been supported especially the regulatory
bodies of; Public procurement and Oversight Authority, Public Procurement Advisory board, and
Public Procurement Administrative board.
However, since the inception of PPDA in 2007 together with the regulatory bodies, there have
emerged challenges which have continued to limit the success of the above procurement
umbrella. It is in this vein that we wish to highlight as our scope some of the challenges that
public procurement encounters.
Government procurement
Government procurement also called public tendering or public procurement, is the procurement
of goods and services on behalf of a public authority, such as a government agency.
To prevent fraud, waste, corruption or local protectionism, the law of most countries regulates
government procurement more or less closely. It usually requires the procuring authority to issue
public tenders if the value of the procurement exceeds a certain threshold.
Government procurement is also the subject of the Agreement on Government Procurement, a
plurilateral international treaty under the auspices of the WTO.
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