Government reserved only Sh41 billion worth of tenders for special groups
What you need to know:
- The government spent Sh230 billion on the procurement of goods, works and services in the last financial year. “Of this amount, Sh41,861,522,710 was reserved for firms owned by youth, women, and PWDs
- The Department of Early Learning and Basic Education was awarded the highest value of contracts at Sh43.12 million.
Government institutions reserved only Sh41 billion out of Sh230 billion that was meant for enterprises owned by Women, Youth, and Persons with Disabilities (PWD) in the six months to June this year.
The government spent Sh230 billion on the procurement of goods, works and services in the last financial year. “Of this amount, Sh41,861,522,710 was reserved for firms owned by youth, women, and PWDs,” read the report.
The Department of Early Learning and Basic Education was awarded the highest value of contracts at Sh43.12 million. A report tabled in Parliament covering the period January to June 2023, shows that women enterprises received 78 contracts worth Sh71.6 million while youth enterprises were awarded 45 contracts valued at Sh10.7 million.
Only six of the 22 Ministries and State Departments reported to the Public Procurement and Disposal Authority (PPRA) on contracts awarded to youth, women and persons with disabilities.
“Women enterprises received 78 contracts valued at Sh71.6 million while youth enterprises were awarded 45 contracts only at Sh10.7 billion, while persons with disabilities were awarded 12 contracts worth Sh4.2 billion,” the report states.
In the period under review, 13 Constitutional Commissions and Independent Offices awarded women, youth and persons with disabilities a total of 98 contracts valued at Sh93 billion.
The Teachers Service Commission (TSC) and the office of the Auditor General toped the Constitutional and Independent offices after awarding contracts worth Sh36.2 million and Sh21.9 million respectively.
About 93 state corporations and semi-autonomous state agencies (Sagas) that reported on contract awards registered a total of 2,157 contracts worth Sh6.55 billion.
The Kenya Electricity Generating Company (KenGen) tops the list of the state corporations and semi-autonomous state agencies that awarded lucrative deals to women, youth and the PWDSs. KenGen gave tenders worth Sh141 million to women, youth and the disabled followed by the Geothermal Development Company at Sh78.5 million
Universities, Colleges, Polytechnics, and Technical Institutions reported 350 contracts to the Public Procurement and Asset Disposal team all valued at Sh255 million.
“During the period under review, only 29 of the 47 county Executives and agencies reported to the authority on contracts awarded to the targeted groups,” the report states.
“A total of 682 contracts were awarded worth Sh1.4 billion for goods, works and services by the procurement entities. County Government of Kwale reported the highest amount at Sh374.4 million while the County Government of Murang’a awarded the least at Sh1.45 million.”
At the county assemblies, only one entity disclosed its procurement activities in line with the provisions of the law that requires entities to set aside 30 percent of their annual procurement budget to women, youth and persons with disabilities.
The PPRA report tabled in Parliament shows that only 15 of the 47 County Assemblies reported their procurement quota spending to the Public Procurement and Asset Disposal Authority (PPRA).
“On the utilization of the reserves procurement spending, only 15 procurement entities awarded 46 contracts worth Sh96.6 million,” the report states.
The report states that procuring entities that reported on their reserved procurement spending to the target groups, absorbed an average of 10.68 percent of the procurement funds of Sh42.5 billion during the reporting year.
Ministries and State Departments absorbed the highest reserved amount at 27.91 percent of the reserved procurement funds of Sh275.5 million with Universities, Colleges, Polytechnics, and Technical Institutions absorbing the least amount at Sh13.8 million out of Sh1.8 billion representing 0.88 percent absorption rate.
The procuring entities absorbed an average of 10.68 percent of the reserved procurement expenditure of Sh42.5 billion during the reported period.