This Act, divided into eighteen parts and consisting of 183 sections, provides, in compliance with constitutional provisions, procedures for efficient public procurement and for assets disposal by public entities. The Act specifies that public procurement and asset disposal by State organs and public entities shall be guided by the following constitutional values and principles: promotion of national values; quality and freedom from discrimination; provision of affirmative action programmes; principles of integrity; values and principles of public service; promoting financing initiatives; principles governing the procurement profession, international norms; maximisation of value for money; promotion of local industry, sustainable development and protection of the environment. The Act applies to all State organs and public entities with respect to: procurement planning; procurement processing; inventory and asset management; disposal of assets; contract management; and to the following activities: retaining of the services of an individual for a limited term; transfer of assets being disposed off by one state organ or public entity to another state organ or public entity without financial consideration; acquiring of services provided by government or government department; acquisition and sale of shares or securities, fiscal agency by a public entity, investments such as shares purchased by cooperative societies, state corporations or other public entities; procurement and disposal of assets under Public Private Partnerships Act; procurement and disposal of assets under bilateral or multilateral agreements between the Government of Kenya and any other foreign governments.
The Act defines the following relevant terms: accounting officer; citizen contractor; common-user items; complex and specialised contracts; consultancy services; contract administration; corruption; disadvantaged group; divestiture of public assets, including intellectual and proprietary rights and goodwill and other rights of a procuring entity; electronic reverse auction and e-procurement; framework agreement; fraudulent practice; goods, including raw materials, products, equipment, commodities in solid, liquid or gaseous form, electricity and services that are incidental to the supply of the goods, works and services; locally produced product or service; person with disability; preference; pre-qualification procedure; public entity; public private partnership; registration of suppliers; standards; supply chain management; woman; youth.
The Act covers the following matters: bodies involved in the regulation of public procurement and asset disposal, including National Treasury, Public Procurement Regulatory Authority, Public Procurement Board; County governments responsibilities with respect to public procurement and asset disposal; investigations and powers to ensure compliance; international organisation of procurement entities; general procurement and asset disposal principles; basic procurement rules; classified procurement methods and procedures; methods of procurement of goods, works and services; procurement of consultancy services; procurement contracts; preferences and reservation in procurement; inventory control, asset and stores management and distribution; disposal of assets and related methods; administrative review of procurement and disposal proceedings; offences and sanctions; policy operationalisation and procedure; repeal, transition and savings provisions.