The Impact of Public Procurement Law on the Performance of Energy Sector in Kenya
Abstract
Procurement in the energy sector has rapidly increased due to the high demand in domestic energy requirements. In the past decade, the country has grappled with the challenge of unreliable, expensive and unsustainable energy use supporting a stagnating industrial and manufacturing base. This is due to aging energy infrastructure that can no longer meet the modern day requirements as envisaged in the country’s economic blueprint, the Kenya Vision 2030. The objective of the paper was to assess the impact of public procurement law on the performance of energy sector in Kenya. The legislative and regulatory framework pillar is based on the existence, availability, quality and use of the legal and regulatory framework from the highest level (Act and Regulations) down to the more detailed operational procedures, guidelines, model tender documents, and standard conditions of contract. The paper finds that sound legal framework in place with the enactment of the PPDA and Regulations. Kenya has in place a sound and comprehensive legal framework for public procurement with a clear hierarchical distinction. The study recommends that all the energy corporations should establish supplier appraisal audit policies because this will help them ensure that they will deal with qualified and competent suppliers. It was also recommended that all the energy corporations should adopt the ethical policies and guidelines that have been established by the Public Procurement and Regulatory Authority (PPRA) and the Kenya Institute of Supplies Management (KISM). This because they are all aimed at ensuring that all the public institutions conduct their supply chain processes in line with the Public Procurement and Asset Disposal Act (PPADA) 2015. The energy corporations should also establish policies on ethical use of information technology since this would be a major boost to ensure that there is transparency and accountability in the supply chain performance.
Keywords: Public Procurement Law, Energy Sector & Kenya
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