Public procurement in Kenya is governed by the Public Procurement and Asset Disposal Act 2015, whose full title is "An Act of Parliament to give effect to Article 227 of the Constitution; to provide procedures for efficient public procurement and for assets disposal by public entities; and for connected purposes". This legislation came into effect on 7 January 2016, repealing the previous Public Procurement and Disposal Act of 2005, and all state organs and public entities within Kenya are required to comply with this law in regard to planning and undertaking procurement, inventory management, asset disposal and contract management, except where the provisions of the Public Private Partnership Act, 2013 already apply to procurement and disposal of assets, or where procurement and disposal of assets takes place under bilateral or multilateral agreements between the Government of Kenya and any other foreign government or multilateral agency.
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The law provides for the National Treasury to be responsible for public procurement and asset disposal policy formulation.
Access to Government Procurement Opportunities
The Access to Government Procurement Opportunities (AGPO) law, originally introduced in 2012, set aside 10% of government contracts to be awarded to disadvantaged groups (i.e. enterprises owned by young people, women or persons with a disability) without competition from established firms. This percentage was increased to 30% in 2013. The AGPO policy also covers micro and small enterprises, local and citizen contractors and citizen contractors in joint ventures with foreign suppliers.
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See Kenya Gazette Supplement, 24 December 2015