NAIROBI, Kenya — Kenyans are losing billions of shillings through a public procurement system riddled with weak rules, poor data, and limited oversight, a new report by the Public Procurement Regulatory Authority (PPRA) has warned.
The 2024 assessment paints a grim picture of a system that remains overly complex, opaque, and vulnerable to corruption, denying the public value for money and discouraging fair competition.
According to the report, procurement rules meant to safeguard public funds have instead paralysed the system and created loopholes that protect corrupt practices.
“The large number of procurement methods and approaches means that it is complicated to select the right one and apply it properly,” the report states.
“As a result, practitioners become inclined to focus on formal details more than on economy, efficiency, and transparency.”
The review found that procurement officers are often more concerned with procedural compliance thanwith achieving value for money.
It also flagged the inability to appeal the choice of procurement method, a gap that gives officials wide discretion to opt for non-competitive processes with minimal scrutiny.
Transparency remains a major weakness. Many public entities fail to publish procurement plans, tender notices, or contract awards, denying the public and potential bidders access to critical information.
“Only about 73 per cent of major procuring entities publish tender notices as required,” the report notes, meaning more than a quarter of major procurements begin without public visibility.
The report further found that contract amendments and variations are frequently not disclosed, allowing the final cost of projects to balloon beyond the original terms advertised to the public.
“Contract amendments and variations often go unreported,” it states. “The actual disclosure of information does not meet the requirements.”
Poor compliance has also undermined the quality of procurement data, making it difficult to monitor spending patterns or detect corruption.
“The information system is therefore not yet quite accurate and comprehensive enough to fully meet the needs for monitoring how the public procurement system actually works,” the report says, warning that the data cannot reliably support policy decisions.
Kenya has made repeated attempts to rein in procurement-related corruption, which has long been identified as one of the biggest drains on public resources.
In June 2018, former President Uhuru Kenyatta ordered heads of procurement and accounting units to proceed on compulsory leave, but the move was suspended after being challenged in court.
President William Ruto has since directed all state departments and counties to adopt a unified electronic government procurement (EGP) system to boost transparency and curb graft. However, PPRA notes that compliance remains low, with resistance from key actors slowing implementation.
The report also criticises the procurement complaints mechanism, describing it as effectively designed to discourage whistleblowers.
To challenge an unfair or corrupt tender at the Public Procurement Administrative Review Board (PPARB), suppliers must pay a high, non-refundable fee.
“High fees discourage complaints,” the report warns, flagging the system as a major obstacle to exposing procurement fraud.
As a result, the authority concludes, Kenyans continue to lose billions of shillings while weak oversight, limited transparency, and unreliable data allow corruption to persist largely unchecked.
The findings raise fresh questions about accountability in public spending and the government’s ability to deliver value for money in a system that remains central to Kenya’s development agenda.
