Public Procurement and Asset Disposal Act

This Act may be cited as the Public Procurement and Asset Disposal Act.

Text includes the phrase "the national government or any organ or department of the national government".

Refers to the national values and principles provided for under Article 10.

The Act applies to public procurement activities (planning, processing, inventory and asset management, disposal of assets, and contract management) and lists specific exclusions including certain service retainers, intra-government transfers without consideration, government-provided services, acquisitions of shares or securities and certain PPP or international agreement procurements unless regulations prescribe otherwise.

Where this Act conflicts with other legislation, notices or circulars on procurement and asset disposal, this Act takes precedence, except when procurement of professional services is governed by another Act of Parliament; and approval powers over work or expenditure do not by themselves grant power over entire procurement proceedings.

If a provision of this Act conflicts with Kenya's obligations under a ratified treaty or agreement, the treaty or agreement prevails.

Sets the membership composition of the Public Procurement Regulatory Board and requires the appointing authority to ensure regional and gender balance.

Members of the Board must hold specified university qualifications and meet Chapter Six requirements; certain members must have at least five years' relevant management experience.

Section 12 lists the functions of the Board: it must ensure effective performance of the Authority’s functions, approve policies, oversee and manage assets, receive gifts, determine expenditure and reserves, open bank accounts, may invest funds with Cabinet Secretary approval, may delegate powers by resolution, members are to be paid allowances as determined by the Cabinet Secretary, and members must disclose conflicts of interest and not take part in conflicting decisions.

A member of the Board of the Authority, including the chairperson, holds office for three years and is eligible for re-appointment for a further three years.

The Board's business must follow the First Schedule; the Board may set its own procedure (except where the First Schedule provides otherwise); five Board members make a quorum; the Board may invite technical persons (they have no vote on classified matters).

Establishes a Director-General for the Public Procurement Regulatory Authority appointed by the Cabinet Secretary on the advice of the Board, and makes the Director-General the Authority's Chief Executive Officer and Secretary to the Board.

The Director-General holds office for three years and may be re-appointed for a further three-year term.

The Director-General must manage the day-to-day affairs of the Authority and must be answerable to the Board; the Director-General must also perform other functions determined by the Board or provided for under the Act.

The Director-General must not be employed in any gainful employment, work or business.

The Board must determine the terms and conditions of service of the Director‑General and staff, and must determine the Authority's schemes of service, in consultation with specified authorities.

Vacancy of office

The appointment of the Director-General may be terminated only as set out in this section; grounds listed include violating the Constitution or other written legislation, incompetence, unsound mind, conviction with imprisonment exceeding six months or a fine exceeding one million Kenya shillings, contravening terms and conditions of service, and bankruptcy; before removal the Director-General must be informed in writing of the reasons and be given an opportunity to be heard.

The Board may appoint a staff member of the Authority to act as Director-General during the Director-General's illness, absence, or a vacancy, for up to three months while the Public Service Commission reconstitutes the Recruitment Panel to recruit a new Director-General.

The Board may employ management staff of the Authority, on terms and conditions it determines, and must take into account ethnic and regional balance and gender parity when doing so.

The Board must prepare and submit annual revenue and expenditure estimates to the Cabinet Secretary at least five months before the start of each financial year; the Authority's financial year ends on 30th June unless another day is prescribed.

The Authority must be audited by the office of the Auditor-General.

The Board must prepare an annual report each financial year, submit quarterly reports within 30 days after each quarter and the annual report within 3 months after year-end to the Cabinet Secretary; the Cabinet Secretary must transmit received reports to Parliament and the relevant county assembly within 30 days; the Board must publish and publicize the annual report within two weeks after seven days from submission.

Creates a central independent Public Procurement Administrative Review Board and requires the Review Board to ensure reasonable access to its services nationwide where appropriate.

The Review Board handles reviewing, hearing and determining tendering and asset disposal disputes; it has power to develop rules and procedures to be gazetted by the Cabinet Secretary; and the Authority must provide secretariat and administrative services to the Review Board.

The Review Board is composed of: a chairperson with qualifications and experience equivalent to a Judge of the High Court; seven other members with qualifications as prescribed in regulations; seven other persons appointed by the Cabinet Secretary; and specified nominees from professional bodies listed in subsection (2).

Members of the Review Board must possess a university degree from a Kenyan-recognised university, have at least seven years' relevant experience, be professionals of good standing, and meet Chapter Six requirements; the Chairperson must qualify as a High Court judge and meet Chapter Six requirements.

The Chairperson and members of the Review Board hold office for three years and are eligible for another three-year term.

The Cabinet Secretary and the Salaries and Remuneration Commission must determine the terms and conditions of service of the Review Board; Review Board members must serve on a part-time basis.

The National Treasury is responsible for formulating public procurement and asset disposal policy and must perform a list of functions including policy development, guidelines, technical assistance, management of related service cadres, research and issuing procurement guidance; it may prescribe institutional frameworks.

The Public Procurement Regulatory Authority has powers including suing and being sued; managing moveable and immoveable property; performing acts necessary to discharge its functions; and may establish regional offices to ensure access to services under Article 6 of the Constitution.

The Authority has a range of functions including monitoring, reviewing, enforcing standards, managing procurement data and portals, advising the Cabinet Secretary, handling complaints, reporting, developing codes and training, and referring potential civil or criminal matters to relevant authorities.

A County Treasury is the organ responsible for implementing public procurement and asset disposal policy in the county; the County Treasury may prescribe an institutional framework for common user items.

A public entity must provide the National Treasury or the Authority with information relating to procurement and asset disposal when required in writing.

The Authority may undertake investigations, at reasonable times, including examining procurement-related records, and investigations may be initiated by the Authority or on written request; investigations are to be conducted by an investigator appointed by the Authority.

Investigators have powers to access and copy relevant premises and documents of the procuring entity or participants, may remove and certify copies of removed documents, and may have additional powers and conditions prescribed by regulations.

An investigator must prepare and submit a report to the Authority after completing the investigation.

The Director-General may order specified remedial actions, terminate proceedings, submit investigation summaries to authorities, or require transfer of procurement responsibilities, directed at the procuring entity or others whose rights may be affected.

The procuring entity and any other person entitled under section 38(2) may apply to the High Court for judicial review of a Director-General's order within fourteen days after the order is made.

If the Review Board is reviewing or has reviewed an issue, no investigation under this Part may be commenced or continued and no order may be made in relation to that issue, except that subsection (1) stops applying if, after the Review Board's review, new information not previously before the Review Board comes to the attention of the Director-General.

Section 41 lists grounds on which a person may be debarred from procurement and states that the procedure and grounds are to be prescribed by Regulations.

A party to the debarment may seek Judicial Review to the High Court from the Authority's decision within fourteen days after the decision is made.

The Authority (or its authorised persons) may inspect and audit procurement and disposal records; procuring entities, contractors and tenderers must cooperate; inspectors have access to documents, may copy or remove them (leaving certified copies), and may have further prescribed powers; the Authority must conduct audits at specified stages.

Authorized persons from the Authority may enter procuring entities' premises at a reasonable time to collect information; if refused entry a magistrate may issue a warrant authorizing police entry and use of reasonable force to search and obtain information.

An accounting officer of a procuring entity may use a design competition procedure to determine the best design scheme.

Rules for design competitions: advertising and documentation, evaluation by an evaluation committee, appointment of assessors by an accounting officer, prizes for the top three, transfer of intellectual property by bidders, and ownership of submitted schemes by the procuring entity.

An accounting officer of a procuring entity may use restricted tendering to procure goods, works or services.

Procuring entities may use direct procurement for goods, works or services in specified exceptional circumstances, provided the purpose is not to avoid competition.

Procedure for direct procurement.

Requests for quotations may be used when the estimated value of the goods, works or non-consultancy services being procured is less than or equal to the prescribed maximum value for using requests for quotations as prescribed in Regulations.

Section 106 requires specific procedures for procurement by request for quotations, including duties for accounting officers to distribute requests and duties and obligations on procuring entities and suppliers regarding orders and confirmations.

The entity may use low-value procurement for low value items that are not procured regularly and are not covered by a framework agreement.

Procedure for low-value procurement.

A procuring entity may use force account—using state/public officers and public assets, equipment and labour—subject to conditions in subsection (3).

The Authority may in exceptional circumstances approve use of an electronic reverse auction system for procurement of goods, works or non-consultancy services by a procuring entity.

States "Conditions for use of Reverse Auctions" and mentions "a procurement portal".

Section requires Section to invite all registered suppliers in the specific category to compete in a reverse auction.

Title: Successful reverse auctioneering bid

Section 114 sets rules for framework agreements including a definition of "call-offs order", an obligation for an evaluation committee to evaluate bids in mini-competitions, and a duty for a procurement function to prepare and submit quarterly analytical reports to the accounting officer with a copy to the internal auditor.

A procuring entity may use a procurement procedure specially permitted by the National Treasury; the Cabinet Secretary may prescribe the procedure for such procurements. Conditions for use include the specific circumstances listed in subsections (2)(a)–(f).

Open tendering is the preferred procurement method for goods, works and services; the procuring entity may use an alternative procurement procedure only if that procedure is allowed and satisfies the conditions under this Act; open tendering must be adopted for procurements at thresholds prescribed in national and county Regulations.

Section 92 lists procurement methods including open tender; two-stage tendering; design competition; restricted tendering; direct procurement; request for quotations; electronic reverse auction; low value procurement; force account; competitive negotiations; request for proposals; framework agreements; and any other method as prescribed in regulations and tender documents.

An accounting officer of a procuring entity may run a pre-qualification procedure and must publish an invitation notice containing specified information.

The accounting officer of a procuring entity must promptly issue pre-qualification documents to all candidates who request them, keep a record of recipients, include specified information (including items in subsections (3)(a)–(e) and the information in section 93), allow candidates at least fourteen days to prepare and submit applications, and promptly respond to clarification requests received before the submission deadline.

The evaluation committee must record pre-qualification evaluation results in writing; a procuring entity must invite tenders only from approved pre-qualified persons and must notify applicants who did not qualify.

Accounting officers and procuring entities must advertise and take reasonable steps to bring tender invitations to potential bidders; specific advertising channels and thresholds apply for national, county and international notices.

The time allowed for preparing tenders must not be less than the minimum period prescribed, and that time excludes the day of the tender notice.

The accounting officer of a procuring entity must, upon advertisement, immediately provide copies of tender documents in accordance with the invitation to tender and must upload the tender document on the website; the accounting officer may charge prescribed fees for copies.

A procuring entity may use two-stage tendering when it cannot formulate detailed specifications; in the first stage tenderers submit proposals without prices and in the second stage retained tenderers submit priced final tenders to a single set of specifications which the procuring entity may modify.

The accounting officer of a public entity must ensure the entity complies with the Act and perform specified procurement, documentation, budgeting, committee, submission and other responsibilities.

The accounting officer must establish systems and procedures to facilitate decision making for procurement and asset disposal.

Requires an accounting officer to establish an ad hoc evaluation committee from staff with relevant expertise and sets composition, duties, appointment and procedures including consultation and possible external experts.

Procurement functions must be handled by procurement professionals with qualifications recognised in Kenya; the head of procurement must provide procurement professional advice to the accounting officer; and the Cabinet Secretary must make regulations for carrying out this section in respect to low value procurement.

An accounting officer may set up an inspection and acceptance committee; that committee is (to be) appointed and must inspect, test, review, accept or reject delivered goods, works or services and ensure quantity, standards, timing, documentation and issue appropriate certificates or notes.

A procuring entity or procuring entities with common interest may establish a sector-specific procuring agency at national or county level; such establishment must be in accordance with this Act and its regulations.

A procuring entity or procuring entities with common interest may enter into consortium buying to procure jointly and benefit from economies of scale.

A procuring entity may procure and appoint a procuring or asset disposal agent; state organs/public entities must prefer local agents and must not appoint more than one agent for the same transaction; procuring or disposal agents must comply with this Act.

The Authority may transfer a procuring entity's procurement responsibility to another procuring entity or procuring agent in certain circumstances; an accounting officer must arrange for another procuring entity to carry out procurement when approved or recommended; a procuring entity may use another State organ's register list when its own list is insufficient; procuring entities must obtain whole relevant category lists from State organs and subject them to this Act.

Accounting officers must prepare annual procurement plans and plan asset disposals; they must not start procurement without budgeted funds; approved plans must be published; National Treasury will publish submitted plans.

Procuring entities must not split procurements to avoid procedures; heads of procurement must run market surveys; a market price index is issued quarterly; public officers paying inflated prices must reimburse losses.

Sets eligibility criteria for bidding, lists specific disqualifying conditions, describes when a person or consortium is ineligible, allows State organs to require evidence, and treats submission of false information as grounds for ineligibility.

State organs or public entities may, in writing, request to use another body's registration list if that list is valid and competitively developed; they must then subject that list (and their own, where applicable) to the Act's procedures.

The head of the procurement function of a procuring entity must maintain and update lists of registered suppliers, contractors and consultants in categories of goods, works or services according to its procurement needs; names may be submitted continuously and the registration list must be updated periodically as prescribed in Regulations and in accordance with this Act.

An accounting officer of a procuring entity must use the Authority's standard procurement and asset disposal documents in all procurement and asset disposal proceedings.

State and public officers with an interest in procurement or asset disposal must disclose that interest in writing and must not participate in procurement or disposal related to that interest.

An accounting officer of a procuring entity must prepare clear and complete specific requirements for the goods, works or services to be procured that allow fair and open competition.

An accounting officer of a procuring entity may require tender security with tenders, subject to prescribed requirements or limits; target groups in reserved procurements must fill and sign the Tender Securing Declaration Form.

A person who submits a tender, proposal or quotation must include declarations that they will not engage in corrupt or fraudulent practices and that they and their sub-contractors are not debarred from procurement proceedings.

If procurement or asset disposal proceedings are terminated, an accounting officer must give the Authority a written report within fourteen days, the report must include reasons, and the accounting officer must notify all tenderers within fourteen days with reasons.

Communications and enquiries between parties in procurement and asset disposal proceedings must be in writing.

Tenderers and other persons must not try to influence evaluation: those who submitted a tender must not send unsolicited communications that could be seen as attempting to influence evaluation and comparison of tenders; any person must not attempt to influence the evaluation. Contravention is an offence and can lead to disqualification and disciplinary action. After evaluation is complete, a tenderer may communicate with the procuring entity about the proceedings.

Persons to whom the Act applies must not engage in corrupt, coercive, obstructive, collusive or fraudulent practices or conflicts of interest in procurement or asset disposal; contravention is an offence; certain conflicts lead to contract termination and cost liabilities; affected persons must disclose conflicts in some circumstances and are barred from participation or subcontracting in related procurements.

Certain procurement-related information is confidential; covered persons must sign a prescribed confidentiality declaration; disclosures are restricted but allowed in specific situations; contravening the section is an offence and leads to debarment for ten years.

Accounting officers must keep procurement records for at least six years and maintain a filing system; procuring entities must make records available on request; accounting officers may charge a fee but it must not exceed costs.

Procurement approvals must be written and dated; delegated approvers cannot approve unless delegation is written; accounting officers must keep specimen signatures; individual signatories and accounting officers are responsible for approvals.

Section 70 requires the Authority to issue standard procurement and asset disposal documents; procuring entities must use those standard documents; accounting officers are responsible for preparing tender documents; procuring entities may charge fees for tender documents; tender documents must include specified statements such as attendance at openings and that accounting officers may terminate proceedings.

The head of procurement must maintain and continuously update lists of registered suppliers, contractors and consultants; a procuring entity may seek clarification on eligibility but not on capability.

Contractors, suppliers and consultants must comply with the provisions of this Act and the Regulations.

Initiation of the procurement process must be as prescribed in the Regulations, subject to procurement planning.

Section 74 lists required content for an invitation to tender (items (1)(a)–(j)) and states that all tender documents must be sent out to eligible bidders by recorded delivery.

Allows procuring entities to amend tender documents before the submission deadline by issuing an addendum (without materially altering substance), requires prompt distribution of addenda to recipients of the original documents, deems addenda part of the tender documents, and requires the accounting officer to extend the deadline when amendments leave insufficient time.

After the deadline for submitting tenders, a person who submitted a tender shall not change, or offer to change, the terms of that tender.

Sets basic rules for submitting tenders: procuring entities must provide an accessible submission site and tender box (including compliant electronic box); staff or the deliverer receive tenders; opened postal tenders must be recorded and placed in the box; procuring entities must not accept late tenders.

Rules for opening tenders: the tender opening committee composition and duties, who may attend, recording requirements, and certain protections for tenderers and tender documents.

A tender is responsive when it meets all eligibility and other mandatory requirements in the tender documents; minor deviations or correctable errors that do not affect substance may be acceptable and should be quantified and considered in evaluation.

The evaluation committee must evaluate and compare responsive tenders; prepare an evaluation report; the person responsible for procurement must submit that report to the accounting officer; and each evaluation committee member must sign the report.

A procuring entity may request a written clarification from a tenderer to help evaluate and compare tenders, but a clarification must not change the terms of the tender.

The tender sum as submitted and read out during tender opening is final and must not be corrected, revised, adjusted or amended by any person or entity, subject to subsection (2).

An evaluation committee may, after tender evaluation but before award, conduct due diligence and present a written report to confirm and verify the qualifications of the lowest evaluated responsive tenderer.

The head of procurement of a procuring entity must review the tender evaluation report and give a signed professional opinion to the accounting officer; the accounting officer must consider that opinion when awarding a tender.

The evaluation committee of the procuring entity must evaluate all tenders, subject to prescribed thresholds, to make recommendations to the accounting officer through the head of procurement to inform contract-award decisions.

Certain tenders are identified as successful by specified evaluation methods; citizen contractors or entities at least fifty-one per cent owned by Kenyan citizens are entitled to 20% of their total evaluation score if they attain the minimum technical score.

The accounting officer must notify in writing the successful tenderer and, when doing so, must notify other tenderers that they were unsuccessful; the successful bidder must signify acceptance in writing within the time frame specified in the notification.

The accounting officer of a procuring entity may extend the tender validity period before it expires, but must notify each tenderer in writing; extensions are limited to 30 days and may be done only once; tender security is forfeited if a bidder withdraws after accepting an extension.

The invitation to tender and the tender documents shall be in English.

Section 90 requires national security organs and other procuring entities handling classified procurements to manage them using a dual list; certain procuring entities must seek annual Cabinet Secretary approval for classified item lists; confidentiality is required and improperly treating open-tender items as classified is an offence.

This Part applies to procurement of professional services that are predominantly intellectual or advisory in nature.

A procuring entity may use a request for proposals (RFP) subject to any prescribed restrictions when the procurement is for services (or a combination of goods and services) and the services are advisory or predominantly intellectual.

Initiation of procurement is subject to section 73 of the Act.

The accounting officer of a procuring entity must invite proposals only from persons who have been shortlisted as qualified to submit tenders, within a period as prescribed.

An accounting officer of a procuring entity must prepare and advertise a notice inviting expressions of interest, specifying details such as name and address, description of services, eligibility and where and when to submit.

The provisions of section 78 about opening of proposals apply here, but with modifications.

The evaluation committee must record in writing the results of its evaluation of expressions of interest, stating which candidates are qualified and why others are not; at least six proposals should be shortlisted (or three if fewer than six were received); if a repeat process still fails to yield the required number, the procuring entity must proceed with the procurement and report to the Authority.

The accounting officer of a procuring entity must examine expressions of interest after the submission deadline to determine qualification and must notify tenderers in writing of the results.

Accounting officers of a procuring entity must issue each short‑listed qualified person a request for proposals and a copy of the terms of reference, including specified contents.

Procuring entities must use Quality and Cost Based Selection (QCBS) as the preferred evaluation method and state the procedure in the Request for Proposals; RFPs must request both technical and financial proposals in separate envelopes; accounting officers and the Authority have specified written duties.

Time for preparation of proposals shall be in accordance with section 97 of this Act.

Evaluation committees must examine proposals; the accounting officer must notify unsuccessful bidders in writing and give reasons when the successful bidder is notified.

The successful proposal shall be the responsive proposal with the highest score determined by an accounting officer in accordance with procedure and criteria set out under section 86 of this Act.

The accounting officer may negotiate with the successful proposer and may request and permit changes (subject to section 129(1)); if those negotiations do not result in a contract the accounting officer may negotiate with the second-ranked proposer; and offers to any other person must not have price advantages over the earlier offer.

A contract may provide for a different price only if the change is proportional; variations must be such that the proposal would still win if re-evaluated under section 127.

A person who enters into a contract awarded by request for proposals must not later enter into any subsequent contract to procure goods, services or works related to that original contract.

If two or more tenderers have an equal lowest evaluated price (a tie).

An accounting officer must ask identified tenderers to submit best and final offers within a period not exceeding seven days; tenders must be evaluated by the evaluation committee appointed in the initial process.

Cabinet Secretary may develop further guidelines on the powers and thresholds for tender awards; the successful best and final offer is the best rated tender using evaluation criteria set forth in the tender documents.

Accounting officers must prepare contracts consistent with award decisions; large contracts (over Kenya shillings five billion) must be cleared by the Attorney-General before signing; Cabinet Secretaries must regularly inform Cabinet and the national treasury of government contracts over Kenya shillings five billion; any Cabinet Secretary may brief Cabinet on projects of national importance regardless of value; the section does not apply to Parliament and the Judiciary.

Contracts are confirmed by a signed contract document; the accounting officer (or an officer authorized in writing) and the successful tenderer must sign the contract; the accounting officer must enter into a written contract based on the tender documents; contracts must be signed within notification and tender validity timing rules; entering into contracts without an award or without the accounting officer's authority is prohibited; contraventions are an offence.

If the successful tenderer refuses to enter the required written contract, they shall forfeit their tender security and the procurement process proceeds with the next lowest evaluated tenderer, except where the tender validity period has expired.

The accounting officer of a procuring entity must not, as a condition of awarding a contract, require a tenderer to take on responsibilities that were not included in the tender documents.

Accounting officers must publish and publicise contract awards on notice boards and websites if available, report awards to the Authority, and the Authority must publish notices and issue reporting guidelines; national security organs using classified procurement are exempt.

Variations or amendments to procurement contracts must be approved in writing by the respective tender awarding authority within a procuring entity; accounting officers may approve extensions (with conditions) and must report quarterly to the Authority; limits apply to price and quantity variations.

The procuring entity must pay interest on overdue amounts unless the contract provides otherwise.

An accounting officer of a procuring entity may use framework contracting and make awards of indefinite-delivery or multiple indefinite/definite quantity contracts, subject to any prescribed restrictions.

Successful tenderers must provide a performance security up to 10% of the contract amount before signing; the procuring entity will seize it if the contract is not properly executed; subsection (1) does not apply to certain low‑value or reserved tenders, for which securities may be waived or fixed at up to 1%.

Performance security must not generate interest and must follow the form in the tendering document; it may be paid as a bank guarantee from an authorized financial institution or as an irrevocable letter of credit.

Banks or authorised financial institutions must pay the procuring entity the performance security on claim; they must also pay 1% interest per day after ten working days if disclosed and under certain court conditions; local banks must issue guarantees for foreign contractors; the Cabinet Secretary must make regulations.

The successful tenderer is entitled to have the performance security returned within thirty (30) days after final acceptance by the accounting officer of the procuring entity, with a retention-period exception for works.

Contracts for works, goods or services must not be paid before execution or delivery and acceptance, unless the tender documents or contract specify advance payment; any advance payment must not be made before the contract is signed.

Advance payments up to 20% may be provided and are to be paid upon the successful tenderer submitting an advance payment security; the Cabinet Secretary must make Regulations to implement the section.

The successful tenderer must use the advance only for activities related to the tender.

If tender documents do not prohibit subcontracting, the successful tenderer may subcontract part of the tender subject to conditions; and the successful tenderer is responsible to the procuring entity for the subcontractor's obligations.

Accounting officers (or their representatives) must ensure goods, works and services are the right quality and quantity; the head of procurement must assist and issue a certificate of acceptance except where technical specifications come from another technical department or engaged professionals; those technical departments or professionals must confirm technical goods, works or services and issue a certificate to the accounting officer.

The accounting officer of a procuring entity must appoint a contract implementation team for every complex and specialized procurement contract; the team must include specified members. The accounting officer may co‑opt or outsource a member.

The head of the procurement function must prepare monthly progress reports of all procurement contracts and submit them to the accounting officer.

The accounting officer of a procuring entity may approve a request to terminate a contract if the procurement management unit requests termination.

The head of procurement must issue a certificate to the contractor confirming delivery and acceptance of goods, works and services when the contract is not complex and specialized.

All procuring entities must comply with Part Xii's provisions on preferential procurement; preferential treatment applies only to goods wholly mined and produced in Kenya (subject to standards); accounting officers must prepare reports when such goods cannot be procured; procuring entities must require successful bidders to transfer technology or create jobs; Kenyan shareholder threshold for preference is above fifty-one percent.

If a person is entitled to more than one preference scheme, the scheme that gives the person the highest advantage applies.

Sets rules on participation, preferences and reservations in public procurement — including who may be targeted, that the Cabinet Secretary prescribes preferences, reserving at least 30% of procurement value for youth, women and persons with disability annually, mandatory domestic sourcing for foreign tenderers (40%), register maintenance, reporting every six months, and other procedural requirements.

Procuring entities must include preferences and reservations in procurement plans; the procuring entity must submit the part of its plan showing application of these schemes within sixty days after the financial year starts; procurement awards where such schemes were applied must be reported with disaggregated data to the Authority quarterly.

Accounting officers of procuring entities must only receipt certified goods, works and services and must record goods, works and services received under subsection (1) in the entity's inventory.

Accounting officers of procuring entities must manage their inventory, assets and stores to prevent wastage and loss and to ensure continued use of supplies; they may use inventory management and control software to meet sound supply chain objectives.

An accounting officer of a procuring entity must set up an inventory management system, to be managed by the head of the procurement function, to control and manage inventories, stores and assets.

Requires accounting officers and heads of procurement to manage receipt, inspection, inventory and use of procured assets and for the Authority to issue management manuals.

Accounting officers must establish a disposal committee when prescribed to dispose of unserviceable, obsolete, obsolescent or surplus stores, equipment or assets; the disposal committee must verify and process disposal recommendations in liaison with the head of procurement function as prescribed.

Sets procedures for disposing unserviceable, obsolete or surplus assets: employees must notify the disposal committee via procurement; a technical report by a relevant expert must set a reserve price; the disposal committee reviews and recommends methods; the accounting officer discloses reserve prices to prospective tenderers, may accept or reject committee recommendations, and may revise reserve prices where there are no responsive bidders.

Lists the permissible methods for disposal of assets, including transfer to another public entity, sale by public tender or auction, trade-in, waste disposal management, and other prescribed methods; and states that radioactive or electronic waste must be disposed of only to persons licensed under section 88 of the Environmental Management and Co-ordination Act.

An accounting officer of a public entity must not dispose of assets to employees or board/committee members except as expressly allowed under the Act and regulations; disposing pursuant to an artificial valuation is an offence.

Candidates or tenderers may seek administrative review within fourteen days of notification of award or occurrence of the alleged breach; a request must be accompanied by a refundable deposit (not less than ten per cent of the contract) except for tenders reserved for women, youth, persons with disabilities and other disadvantaged groups; requests are to be heard in open forum unless national security or the review procedure is likely to be compromised.

When the Secretary to the Review Board receives a request for review under section 167, the Secretary must notify the accounting officer of the procuring entity about the pending review and suspend the procurement proceedings in a prescribed manner.

The Review Board Secretariat must reject a review request if appeal fees were not paid in the prescribed time; the secretary may waive filing fees for candidates in reserved procurements for women, youth, persons with disabilities and other disadvantaged groups.

Identifies "the person who requested the review" as a party to the review.

The Review Board must finish its review within twenty one days of receiving the request; appeals must not delay the procurement process beyond the time set by this Act or its Regulations.

The Review Board may dismiss a request with costs if it considers the request frivolous, vexatious, or made solely to delay procurement or contract performance; the applicant forfeits any deposit paid and may be debarred by the Authority.

The Review Board has the power to annul actions taken by the accounting officer of a procuring entity in procurement proceedings, including annulling the procurement or disposal proceedings entirely.

A person is entitled to request a review under this Part in addition to any other legal remedy they may have.

An aggrieved person may seek judicial review of a Review Board decision by the High Court within 14 days; the applicant must pay a security fee (a percentage of contract value) as prescribed in Regulations before acceptance. The High Court must determine the review within 45 days; an aggrieved person may appeal to the Court of Appeal within 7 days, which must decide within 45 days. If the High Court or Court of Appeal misses its timeline the Review Board decision is final. Disobeying a decision is a breach and actions contrary to it are null and void. If a Review Board decision is quashed the High Court shall not impose costs on either party.

Section 176 lists specific prohibited acts in procurement (clauses (1)(a)–(m)) and prescribes penalties: for a natural person a fine up to four million shillings or imprisonment up to ten years or both, and for a body corporate a fine up to ten million shillings; additional disciplinary measures and debarment may apply.

If the person is a natural person, the penalty is a fine not exceeding four million shillings or imprisonment for a term not exceeding ten years, or both.

Persons acting in good faith while performing duties under the Act are not personally liable; the procuring entity must indemnify employees or board members sued for actions performed in official procurement or asset disposal functions provided they engaged private counsel and were not adjudged guilty of gross negligence, misconduct or grave abuse of office.

The National Treasury must convene meetings at least annually to consult public- and private-sector persons with an interest in the public procurement and asset disposal system.

The Cabinet Secretary must make regulations to carry out this Act and may make regulations to facilitate its implementation; such regulations require Parliament's approval under the Statutory Instruments Act before taking effect.

The Authority must develop a Code of Ethics that applies to every person on whom this Act applies.