KAIMOSI FRIENDS UNIVERSITY COLLEGE (KAFUCO)
(A Constituent College of Masinde Muliro University of Science and
Technology)
School of Business and Economics
PROCUREMENT LAW
COURSE CODE: BCB 427
MAIN EXAM
QUESTION ONE: COMPULSORY
The reforms of the Public Procurement system started in 1997 after the World Bank had
conducted a County Procurement Assessment Review which identified weakness in the Public
Procurement system that reduced effectiveness of financial management AND Government’s
ability to deliver services. The review identified the following weakness in Procurement system:
Reduced effectiveness of the Public Financial Management
Government’s inability to deliver services efficiently.
Obscure rules not based on a sound and transparent legal framework, and
The system did not promote fair competition, thereby rendering it to serious abuse.
Based on the findings from the review by the World Bank, the Public Procurement reform was
officially launched on 25th November,1998 to forestall the weakness. Initial results of the reforms
were witnessed when Public Procurement Regulations were issued in the year 2001 under the
Exchequer and Audit Act. These Regulations unified all the circulars that had governed the
public procurement system, abolished the Central Tender Board and heralded the establishment
of Ministerial Tender Committees, Procurement Appeals Board (herein after referred to as
PPCARAB) and the Public Procurement Directorate (herein after referred to as PPD) as
oversight agencies.
The National Treasury which was established under section 11 of the Public Finance
Management Act,2012 is responsible for public procurement and asset disposal policy
formulation.
QUESTION ONE (30mks)
Required
a. What are the roles of National Treasury in public procurement and asset disposal
(10mks)
b. The Public Procurement Regulatory Authority for the purpose of ensuring access to its
services has functions to be undertaken. What are these functions. (10mks)
c. The management of the board (PPRA) shall have a chairperson nominated by the cabinet
secretary and appointed by the President. What are qualities of a person to be appointed
as a chair person.
(10mks)
QUESTION TWO (20mks)
a. Public Procurement Disposal Act 2015 establishes various committees to carry out Public
entities mandate -Discuss (10mks)
b. The Public Procurement and Asset Disposal Act 2015 has General Procurement rules and
principles that must be adhered to by procuring entities. State any five of these rules and
principles (10mks)
QUESTION THREE (20mks)
a. Terms have been defined in the Public Procurement and Asset Disposal Act 2015.What is
the meaning of the following terminologies. Accounting officer, Appeal, Citizen
contractor, contract period and tender security. (10mks)
b. For fair competition in Public Procurement, open tender is the most preferred method.
Discuss on this method bringing out the stages involved. (10mks)
QUESTION FOUR (20mks)
a. Discuss the conditions that a person should meet to participate for a contract in the
Procurement and Asset (10mks)
b. The Accounting Officer can terminate the Procurement Proceeding before entering into a
contract. Explain (10mks)
QUESTION FIVE (20mks)
a. An Accounting officer of any procurement entity must prepare an annual procurement
plan within an approved budget prior to the commencement of each financial year as part
of annual budget preparation process. Prepare a draft Procurement plan for Kaimosi
University college. (20mks)
