Ease of doing Business in Kenya. Entrepreneurship, Start-ups, Start your own business in the Supply Market. Be your own boss!

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Untapped huge business opportunities:
Are the youths in Kenya sleeping giants?
Youths in Kenya have been urged to register their businesses so as to take
advantage of the huge business opportunities in public procurement. This
was said on Friday 22nd
February 2013 by Ms Mwanamaka Mabruk the
Chief Executive Officer (CEO) of Kenya National Shipping Line a subsidiary
Kenya Ports Authority (KPA) during KPA Suppliers’ Conference.

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The Youths running businesses should register with Ministry of Finance to
ensure they get a share of the Public Procurement Contracts as provided
under the Law and decreed by Retired President Mwai Kibaki.
Mr Oyaro the Head of Procurement KPA echoed the same sentiments. He
confirmed that no single Business owned by Youths or a Disadvantaged
Groups participated in bidding for the many contracts worth of Kenya
Shillings (Kshs) Billions KPA advertised in current financial year. He
reported that KPA has embraced Electronic Procurement (e-procurement)
which will be rolled out in March 2013 on the SAP platform. He added in
future there will minimal human interactions with the KPA Procurement
Officers because all the buying processes will be paperless. He warned
that free email contacts from yahoo!, gmail, hotmail etc will not be
acceptable.
President Kibaki is on record saying, through Affirmative Action, the youths
will be empowered to supply 10 percent (%) of the value of goods, services
and works procured by Government. The President directed Treasury and
the State Law Office to eliminate any legal or administrative obstacles
blocking the youths from accessing Public Tenders. He also ordered all
ministries to include youth focused targets in performance contracts of all
their departments.
President Uhuru Kenyatta increased the reservation percentage threshold
from 10% to 30 %.

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The Minister of Finance responded through the publishing legal notice no.
58 in Special issue of Kenya Gazette of where Public Procurement and
Disposal (Preference and Reservations) Regulations, 2011 were made into
law.
There are many acceptable legal statuses for the Youths. The Youths can
operate these forms of business organization from sole proprietorship in
their human names to Registered Business Names, partnership, joint
ventures, Consortiums and limited Company. The process of registering
with Minister of Finance is easy. All that is needed is one to fill in the form
titled: Registration form for Youth Enterprises for supply of goods, Works
and Services to Government. Here is the website (URL) to ministry of
Finance: www.treasury.go.ke
In the Conference, the Representatives from the Public Procurement
Oversight Authority (PPOA), the procurement and disposal regulatory body
in Kenya pointed out that the reforms in public procurement and disposal
system is playing a critical role in achievement of Kenya Vision 2030; which
is to create a globally competitive and prosperous country with a high
quality of life by 2030. They reported that in financial year of 2008 the
Central Government procurement as percent of GDP was 27 %
representing about Kshs 475 Billions.
PPOA representatives advised all Public Entities that the common
Disclaimer Statement '' …. shall not be bound to accept lowest bid'' is a
contrary to Public Procurement Laws and should be not be included on an
advertisement for invitation of tenders / bids. The lowest bidder ought to be
awarded the tender Committee. That is the spirit and letter of the Laws of

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Kenya. It also supports economics principles of fair competition and value
for money.
All the speakers in the Event challenged the youths, women and persons
with disability to compete in public procurement processes to boost their
living standards and create employment. The Youths were urged and
reminded that Government has preferred them. They should change from
chasing the elusive employment vacancies to seizing the reserved
business opportunities.
The implementation of Constitution of 2010 is at peak with first General
Election slated for March 4. The devolved system of Government means
more business opportunities for the locals and by extension the Youths.
The CEO of Kenya National Shipping Line (KNSL) who was the Guest of
Honour also said because of legal relationships between KPA and KNSL
the pre-qualified suppliers are usually lifted from the database of KPA and
given opportunity to do business with KNSL. My dear reader don’t you
agree that it can never be better than this?
Also in attendance were representatives from major financial institutions in
Coast Region, a demonstration of Public Private Partnership. Equity Bank,
Family Bank, Eco Bank, ABC Bank, Consolidated Bank, Rafiki Micro
finance to name a few. They were unanimous that an entrepreneur who
secures a Local Purchase Order (LPO) or Local Supplier Order (LSO) from
most Government Institutions should visit their halls 100% assured that
financial resources will be availed to him/her. Of course subject to
manageable terms and conditions.

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My question is: how many Kenyans are going to profit from this advice? I
challenge you if you are over 35 years old, the Kenya Laws bars you from
doing business as youth; enable a youth access this opportunity. If you are
a youth or a lady or a person with disabilities I urge you act on this
immediately. I rest my case by asking you to review the figure of Simplified
Procurement Legal framework in Kenya at beginning of the article.
Now, suppliers have rights that are enforceable and must be respected by
all Procuring Entities. We have come a long way. Before this legal
framework was developed and implemented Procurement Departments
(houses) was a likened to “The den of thieves” in the Bible. President
Kibaki in 2003 after first victory of Multi-Party General Election in Kenya; he
decreed for en masse dismissal of all serving Procurement Officers in
Public Service. In the past on one hand the corrupt entrepreneurs operating
in briefcase offices “supplied” air and were promptly paid millions from the
Public coffers. On the other hand credible entrepreneurs’ having done
business with the Government their invoices were left pending; cycles of
Authority to Incur Expenditures (AIEs) or Budgets. Perhaps AIE meant at
that time Authority to Insist on Eating. Such acts of impunity cannot happen
when Chief Justice Dr Willy Mutunga is the Head of the Arm of Government
called Judiciary.
Also Ethics and Anti-corruption Commission, the State Anti-corruption Body
created in the Constitution of Kenya that was promulgated on 27th
August
2010 is an Independent Commission and will thoroughly investigate you
and recommend for your prosecution. The Director of Public Prosecution
will dutiful get you a day before a Court System of Kenya. Mark you there
are many Civil Societies fighting corruption such as Transparency
International, Kituo Cha Sheria, Muhuri among others.

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In a nutshell I urge you to do business based on value system of integrity.
Warren Buffett an American Investor said “there is so much money to be
made within the provisions of the law there is no need to play on the
edges”.
Do you need some assistance? Feel free to contact me.