The document discusses Kenya's Access to Government Procurement Opportunities program (AGPO). It outlines that 30% of public tenders must be set aside for youth, women, and persons with disabilities. To qualify for AGPO, enterprises must register with the National Treasury and meet criteria such as being majority owned by target groups. The procurement process is described, including advertising tenders, evaluation, and contract award. Challenges for suppliers and tips for participating in AGPO are also provided.

1. Access to Government
Procurement Opportunities
KIMANI

2. Session objective
• To highlight the various categories of
procurements for the target groups under the
30% set-aside.
• To raise awareness on the tendering process in
the Public Sector.
• To train and build capacity on the various
procurement methods and general
procurement activities in the Public Sector.

3. Background
• The Public Procurement and Disposal Act 2005 and the
Public Procurement and Disposal Regulations
2006,2009,2011 and 2013 that provide a legal
framework for regulating public procurement, with
oversight functions being carried out by the Public
Procurement Oversight Authority (PPOA).
• Through a Gazette Notice on June 18th 2013, the rules
that will help government institutions comply with the
presidential directive were laid down.
• The directive requires that 30% of all public tenders be
set aside for youth, women and persons with
disabilities.

4. Public procurement regulations, 2015
According to the The Public Procurement and Disposal
Preference and Reservations Regulations, Act. 2015
• A procuring entity shall allocate at least thirty percent
of its procurement spend for the purpose of procuring
goods, works and services from micro and small
enterprises owned by youth, women and persons with
disability.
• A procuring entity shall implement the requirement
through its budgets, procurement plans, tender
notices, contract awards and submit quarterly reports
to the Authority.

5. AGPO PROGRAM
( 30% Preference and Reservation Scheme )
The AGPO Program is a government initiated
program that seeks to facilitate target groups
• youth,
• women and
• persons with disability-owned enterprises
to be able to participate in government
procurement.

6. Qualifying Target Groups
• Youth, women and PWDs are considered a
“Disadvantaged Group” of persons perceived
to be denied by mainstream society access to
resources and tools that are useful for their
survival.
• It includes people who have been subjected to
prejudice or cultural bias because of their
identities as members of groups without
regard to their individual qualities.

7. Qualifying Target Groups cont’d
• Examples:
– Small enterprises
– Micro enterprises
– Disadvantaged groups (women, youth and Persons
with Disabilities)
– Citizen contractors
– Local contractors
– Citizen contractors in joint venture or sub
contracting arrangements with foreign suppliers

8. Eligibility criteria for preference & reservation
schemes
• A small or micro enterprise or a disadvantaged
group wishing to participate in public
procurement shall apply for registration with
the National Treasury in the form set out in
the First Schedule.

9. Qualification for Preference & Reservation
under AGPO
• To qualify for the AGPO program and get a
certificate, the following documents must be
uploaded via www.agpo.co.ke:
• Registration certificate/Certificate of
incorporation/partnership deed.
• Valid Tax Compliance Certificate.
• Valid PIN/VAT certificate.
• Bank account details

10. Qualification for Preference & Reservation
under AGPO…cont’d
• Identification Cards (ID Cards) as proof of being a youth
(aged between 18-35 years), women or PWD as may be
applicable.
• Business /company profile
• Exemption certificate (e.g. for PWDs)
• Copy of certificate of registration with relevant
regulatory bodies (e.g., Women’s Group Certificate
from Ministry of Social Services, SACCO certificate, NCA
certificate, Ministry of Health, Ministry of Water)

11. Preference & Reservation schemes
P&R scheme 2011 P&R Scheme 2013
A person shall be qualified to benefit from the preference
and reservations schemes if the person:
An enterprise owned by youth, women or persons with
disabilities shall be a legal entity that:
Has the necessary qualifications, capability, experience,
and, where appropriate, resources, equipment and
facilities to provide the goods or services intended to be
procured.
Is registered with the relevant government body
Has the legal capacity to enter into a contract for the
procurement.
Is not insolvent, in receivership, bankrupt or in the process
of being wound up and is not the subject of legal
proceedings relating to the foregoing.
Has at least seventy percent membership of youth, women
or persons with disabilities and the leadership shall be one
hundred percent youth, women and persons with disability,
respectively
Is among the persons with whom the procuring entity may
enter into a contract.
Small or micro enterprise or a disadvantaged group wishing
to participate in public procurement shall apply for
registration with the National Treasury (AGPO)
Is not debarred from participating in procurement
proceedings
All lists of registered enterprises from the national and
county levels shall be submitted to the Authority for
consolidation and publication
Is registered by the National Treasury under regulation 6.

12. Exclusive preference to local contractors
Preference & Reservation 2011 Preference & Reservation 2013
Motor vehicles, plant and equipment
which are assembled in Kenya
Motor vehicles, plant and equipment
that are assembled in Kenya
Furniture, textile, foodstuffs and
other goods made in Kenya
Construction material and other
material used in the transmission and
conduction of electricity of which
such material is made in Kenya
Goods manufactured, mined,
extracted or grown in Kenya
Furniture, textiles, foodstuffs and
other goods made or locally available
in Kenya

13. Thresholds for exclusive preferences for citizen contractors
Thresholds for 2011 Thresholds for 2013
500 million shillings for procurements in
respect of road works
1 billion shillings for procurements in
respect of road works, construction
materials and other materials used in
transmission and conduction of
electricity of which the material is made
in Kenya
500 million shillings for procurements in
respect of road works
500 million shillings for procurements in
respect of other works
50 million shillings for procurements in
respect of goods or services
100 million shillings for procurements in
respect of goods
50 million shillings for procurements in
respect of services

14. Unbundling
• For the purpose of ensuring maximum
participation of citizen contractors,
disadvantaged groups, small and micro-
enterprises in public procurement, PEs may
unbundle goods works and services in practicable
quantities.
• A PE may unbundle procurements through lots of
goods, works or services in quantities that are
affordable to specific target groups participating
in public procurement proceedings.

15. Budgetary provisions
• A PE shall allocate at least thirty percent of its
procurement spend for the purposes
procuring goods, works and services from
micro and small enterprises owned by youth,
women and persons with disability.
• The PE shall implement the requirement
through its budgets, procurement plans,
tender notices, contract awards and submit
quarterly reports to the Authority.

16. Facilitation for financing of local purchase or
service orders
• A PE shall facilitate financing of enterprises
owned by youth, women or persons with
disabilities that have been awarded contracts, by
authenticating their notifications of tender
awards and local purchase or service orders
• PE and supplier subsequently enter into an
agreement with the relevant financing
institution with conditions that shall include
paying the contracted enterprise through their
account opened with the financier.

17. Prompt payments for performed contracts
• For the purpose of ensuring sustained growth for
enterprises owned by youth, women or persons with
disabilities, a PE shall make prompt payments for all
performed contracts through electronic media where
possible and shall not delay beyond thirty days.
• Where delay is inevitable, a PE shall make at least fifty
percent part-payment and shall give a written
explanation for the delay to the enterprises.
• Where delay of payments for works performed are likely
to happen, a PE may facilitate invoice discounting
arrangements with a financial institution for the
purpose of advancing credit to the affected enterprises.

18. Requirements for submitting a tender
• Registration certificate/Certificate of
incorporation/partnership deed.
• Valid Tax Compliance Certificate.
• Valid PIN/VAT certificate.
• Registration Certificate with the National Treasury under
AGPO as a Youth, Women and/ or Persons with Disability.
• Duly registered Bank Account.
• Dully filled tender securing declaration form in place of
tender security as may be applicable.
• Proof of Physical address e.g. lease agreement, rent bill,
water bill, and electricity bill etc.
• Litigation History and/ or sworn affidavits as may be
applicable.

19. Requirements for submitting a tender…cont’d
• Registration with the relevant professional bodies e.g. National
Construction Authority for Contractors etc.
• Proof of experience in business as may be applicable e.g. reference
letters from past clients, copies of completion certificates, Copies of
LPOs/LSOs, Copies of award letters etc.
• Letters of credit from banks and/or other relevant financial institutions
as may be applicable.
• Audited books of accounts/ proof of financial capabilities as may be
applicable.
• Professional qualification/CVs of key personnel.
• List of equipment for technical areas such as works as may be
applicable.
• Authorization letters as may be applicable for goods e.g.
manufacturers authorization letters for Computers and related
technical products

20. The Tendering/Procurement Process in the Public Sector for
Suppliers
• Advertisement/invitation of bids/Choice of
Procurement Method
• The following methods of procurement may be
used while inviting bids:-
– Open tendering (LCB or ICB)-preferred method
– Restricted tenders
– Direct procurement
– Request for quotations
– Request for proposals
– Low value procurement
– Specially permitted procedures

21. The Tendering/Procurement Process in the Public Sector
for Suppliers
• Preparation and submission of bids
• Bid opening
– Preliminary evaluation and rejection of tenders do not
satisfy the requirements
• Bid evaluation
– Technical Evaluation-comparing each tender to the
technical requirements of the description of goods, works
& services.
– Financial Evaluation- comparing tenders to determine the
evaluated price of each tender to be completed within 5
days from time of completion of Technical Evaluation.
• Award of Tender and communication of contract award

22. Challenges
• Distance from supply sources and limited means of
communication.
• Dependency on long established product specifications.
• Insufficient understanding of inspection methods especially of
imported goods.
• Poor bargaining power with respect to prices and supply
conditions owing to small quantities bought or imported.
• Inability to negotiate the most favourable freight rates for
imports.
• Cumbersome licensing and customs procedures.
• Poor materials management for imported supplies and
equipment.
• Insufficient access to trade information (in particular concerning
alternative sources supply and supply conditions).
• Scarcity of personnel skilled in techniques of import planning,
international purchasing and importation of goods and services.

23. Activities Inputs /Resources Timeli
nes
Measurable indicators Expected
output
Responsibility
Planning
meeting
G&D Committee
Chairpersons
Human Resource Manager
Finance Manager
Legal Officer
2 Days CEO approval
Memo
List of attendance
Minutes/Resolutio
ns
30% AGPO
Implementati
on plan
CEO/Head of
Procurement
Need
Assessme
nt
Overall Budget
Heads of Departments
FO
PE Head
G&D C
Benchmarking
3Mont
hs
Departmental Budgets
Site Visits
Assessment
Report
Head of
Procurement
Awarenes
s and
Sensitizati
on
HRM
PE
G&D C
Special Groups
Funding and Lending
Agencies
4Hrs Training and
Sensitization Schedules
Contracts
Payment schedules
Working tickets
Attendance
list/Certificates
Report Head of
Procurement/
HRM
Basic AGPO Implementation Logical Framework

24. Implemen
tation
Evaluation Committee
Requisitions
User Departments
1 year Contracts
Orders
Advertisements
Quarterly Reports
Award of outstanding
companies
Report on
total no. of
orders
awarded
Head of
Procurement
M&E PE
Mainstreaming
Committees
Legal Officer
Quarterly Reports from:
Procurement
G&D C
AGPO M&E
System
Head of
Procurement
Reporting PE& G&D C Quarterly/
Annual
Verified Reports
Report
acknowledgement
Annual
Report
Head of
Procurement/
G&D C
Chairpersons

25. Useful Tips
• Register a legal entity (business name/sole trader, partnership, limited company) with
the Registrar of Companies’ Offices in Nairobi
• Register legal entity with the National Treasury – AGPO (www.agpo.co.ke)
• PPOA shall publish the names of all registered groups in the PPOA website
(www.ppoa.go.ke).
• Many procurement entities advertise procurement opportunities in their respective
websites, notice boards or local dailies (www.tenders.go.ke).
• Target groups do not have to submit Tender Security in order to participate in the
procurement process but are required to sign a Tender Security Declaration Form
provided for in the tender documents. This binds suppliers to remain with the process
throughout the tender validity period and to perform the contract if invited.
• A supplier may be debarred for failure to adhere to the terms of the Form/Contract
obligations.
• PPOA publishes the list of the disadvantaged groups who have been registered for easy
access by public entities.
• If one is not satisfied with the outcome of a procurement proceeding, they may lodge a
complaint to the Director General (PPOA) or file a review with the Secretary Public
Procurement Administrative Review Board within 10 calendar days after notification of
award of contract.
• Disadvantaged target groups shall benefit from this preference and reservation scheme
for a period of five years renewable once only.