The Public Procurement Regulatory Authority (PPRA) has flagged 20 public entities, including Kenyatta National Hospital (KNH), four county governments and several county assemblies, for failing to cooperate with procurement audits.
The regulator says its statutory oversight role was frustrated by the institutions’ failure to provide procurement records and other information necessary for compliance assessments, making it impossible to establish whether public procurement was carried out in accordance with the law.
The affected entities include state corporations such as the Council for Nomadic Education in Kenya, Lake Basin Development Authority and Kenyatta National Hospital and county governments of Isiolo, Garissa, Baringo and Siaya.
Marsabit, Kitui, Samburu, Embu, Turkana, Baringo and Tana River are among the 7 county assemblies that are non-compliant.
Others include Isiolo North and Ndia National Government Constituencies Development Fund (NG-CDF), Kitelakapel Technical Training Institute, Shanzu Teachers Training College, Turkana University and Isiolo Water and Sewerage Company.
“The procuring entities did not cooperate with the Authority in the exercise of its mandate to inspect, assess and review procurement records by failing to provide procurement records and information sought by the Authority.
“The procuring entities did not demonstrate how their procurement and disposal processes were in line with Article 227(1) of the Constitution in terms of fairness, equity, transparency, competitiveness and cost-effectiveness.
The PPRA Annual Report for the financial year 2024/25 indicates that the institutions were served with non-compliance reports for contravening Sections 43(1) and 176(1)(a) of the Public Procurement and Asset Disposal Act which requires procuring entities to enable regulatory oversight.
The Authority reviewed 5,064 of the 50,142 tender notices and procurement documents published by public entities during the financial year. The regulator said it found compliance deficiencies in some 2,127 documents, or 42 percent of those reviewed, and has instructed the affected institutions to take corrective measures through addenda and report back on actions taken.
The report also indicates that the Authority conducted 45 procurement assessments, 38 inspections, seven procurement reviews, eight follow-up assessments and 23 special audits on 16 procuring entities, in an effort to strengthen oversight of public expenditure, by analyzing 518 procurement plans out of 640 submitted.
PPRA notes that despite the increased surveillance, the lack of adequate cooperation from some institutions continues to hamper effective enforcement of procurement laws and erodes public confidence in the management of State resources.
The compliance concerns come as procurement expenditure remains heavily concentrated in national government agencies.
Public entities awarded 25,739 contracts valued at Sh219.68 billion during the reporting period, the report reveals.
State corporations and Semi-Autonomous Government Agencies (SAGAs) accounted for more than 82 per cent of the total value of contracts awarded, with 11,636 contracts worth Sh181.87 billion.
The regulator also found gaps in transparency in contract disclosures.
Out of the 25,994 contract awards reported throughout the year, beneficial ownership information was shared for just 11,175 contracts, which is 43 percent. Additionally, only 316 procuring entities provided beneficial ownership details, even though 411 entities reported contract awards.
PPRA highlights that the insufficient level of disclosure compromises the foundational principles of transparency and accountability in public procurement.
