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website: www.ppoa.go.ke
FOREWORD
What is the correct price that public entities should pay particularly for commonly
used items? This question has been canvassed for a long time and whereas it has
been unanimously agreed that price results from the market forces of demand and
supply, research has shown that the Government has lost substantial amounts of
funds in the past due to procurement of common user items at inflated rates. This
has largely been occasioned by collusive practices and bid rigging by those involved
in the procurement process.
Section 30(3) of the Public Procurement and Disposal Act, 2005 provides that
procurement of standard goods, services and works with known market prices shall
be procured at the prevailing market price. To strengthen that requirement, Section
30(4) of the of the aforesaid Act, outlaws all transactions by public officials in which
standard goods, works and services are procured at unreasonably inflated prices.
Public officials who contravene the aforementioned provisions are required under the
Act to inter alia pay for the loss resulting from their actions
The main purpose for this publication is to help/guide accounting officers or heads of
procuring entities on the prevailing market prices for the listed items. This will enable
them make informed procurement decisions. However, it is recognized that the
prices contained here are indicative and that the real prices may contain slight
variations. Any deviation from the reference prices may be based on the prevailing
Consumer Price Index obtained from Kenya National Bureau of Statistics or the
monthly inflation rate issued by the Central Bank of Kenya.
Procuring Entities are encouraged to make reference to this list when preparing
procurement plans, evaluating bids, awarding of tenders and shopping for low value
procurements.
PPOA will continue identifying other commonly used items and publish their prices
so as to keep them up to date and ensure broad coverage of most items. It is our
hope at PPOA that goods, works and services will be procured at the prevailing
market prices so that the savings arising can be used in providing more services to
Kenyans.
ROBERT R. HUNJA
INTERIM DIRECTOR-GENERAL
APPLICATION NOTES
In preparing the price list, PPOA sought lists of the commonly procured items,
specifications, unit of purchase, and respective brand names from various procuring
entities for the different categories as well as the outlets where these items are
procured. A questionnaire was then prepared describing the various items and
distributed to the selected outlets by renowned researchers engaged by PPOA.
Information obtained from the outlets was then analyzed in an effort to come up with
an average price for each item. The resultant average price took into account the
various types currently in the market. Where prices obtained from different outlets for
various items varied greatly, prices out of sync with the others were ignored in
coming up with the average. In some instances, the price list includes brand names
for the respective items.
The brand names were solely mentioned to emphasize the specificity of the survey.
Therefore, the stated brand names are not an exclusive recommendation or
prescription by PPOA to public entities, but are merely mentioned for the
purpose of information.
ACKNOWLEDGEMENT
The PPOA would like to thank various stakeholders for their valuable contribution to
the consultation and research work that enabled the production of this publication,
including: -
PPOA will continue consulting and researching to encompass more items commonly
used by procuring entities and more stakeholders as a way of ensuring periodical
generation of relevant data to guarantee acceptable Market Price Index publications.
To that end, we encourage those whom PPOA would approach in future to assist in
its endeavor to ensure that procuring entities avoid wastage of resources and that
common user items are procured at prevailing market prices.
GOODS
STATIONERY
TEXTILE PRODUCTS
COMPUTER ACCESSORIES
ELECTRICALS
PHARMACEUTICAL ITEMS
SERVICES
CLEANING SERVICES
Written suggestions may be addressed to the Director General and sent through
post as indicated on the cover page or by e-mail to info@ppoa.go.ke.
The Public Financial Management Reform Strategy (PFM) was launched on 23rd
June 2006 by the Minister for Finance, as a result of a diagnostic analysis and wide
consultation carried out in the public and private sector. These reforms include: -
Prior to the year 2001, a supplies manual together with circulars issued from time to
time by the Ministry for Finance formed the basis on which the public procurement
system was managed in Central Government. However, this provided for fragmented
and opaque rules that made the system inefficient, lack accountability and
transparency, easy to manipulate and create avenues for corruption and wastage of
resources.
In an effort to address the aforesaid threats and weaknesses, the public procurement
reform programme in Kenya was launched on 25th November, 1998 at a time when
the procurement system was obscure, grossly inefficient, not based on a sound and
transparent legal framework and did not promote fair competition, thereby rendering
it open to serious abuse. In order to forestall these weaknesses the Exchequer and
Audit (Public Procurement) Regulations, 2001 were issued to unify all circulars that
governed public procurement. These Regulations abolished the Central Tender
Board and heralded the establishment of the Public Procurement Directorate and the
Public Procurement Complaints, Review and Appeals Board.
To enhance the procurement reform process and to provide for a sound legal
framework, a major milestone was achieved with the enactment of the Public
Procurement and Disposal Act, 2005 which became operational on 1st January 2007
with the gazettement of the Public Procurement and Disposal Regulations, 2006 by
the Minister for Finance. This new legal and institutional framework is intended to
transform the manner in which public funds are spent through the procurement
system. PPOA was established under Section 8 of the Act with the general mandate
to oversee public procurement in Kenya. However, PPOA’s role is purely regulatory
and not operational; and includes: -
• ensuring that procurement procedures established under the Public
Procurement and Disposal Act, 2005 and Regulations, 2006 are complied
with.
• monitoring the overall public procurement system and reporting on its overall
functioning.
• assisting in the implementation and operation of the public procurement
system.
• initiating public procurement policy and proposing amendments to the Act or
the Regulations.
• to perform other functions and duties as provided for in the Act.
Specifically, PPOA is inter alia vested with the responsibility to implement and
operationalise the public procurement system by providing advice and assistance to
procuring entities. This legal mandate is the basis of this price reference guide. It is
envisaged that it will assist all Heads of Procuring Entities, Accounting Officers and
all public officials involved in the procurement function with the necessary
information to comply with the legal requirement to deliver value for money in the
public procurement system.
For more information, including an electronic version of this Price Index, visit us at
www.ppoa.go.ke