Market Price Index – A key component in your Tender Pricing Strategy

If you use the MPI as your guide while tendering for supply of goods, you are less likely to under-price yourself to a loss neither will you overprice yourself out of the tender.

August 13, 2020

Procurement

If you are involved in the Supply of Goods to the Government or the private sector, the Market Price Index (MPI) is a powerful tool that can help you understand how to always keep your tender pricing competitive. It gives you a great view of what the government refers to when doing financial evaluation for such types of tenders.

This means if you use the Market Price Index as your guide while tendering for supply of goods, you are less likely to under-price yourself to a loss neither will you overprice yourself out of the tender.

How PPRA develops Kenya’s Market Price Index

Twice every year, the Public Procurement Regulatory Authority (PPRA) seeks a list of the commonly procured items, specifications, unit of purchase, and respective brand names from various procuring entities for the different categories as well as the outlets where these items are procured.

Using this information, a detailed questionnaire is then prepared describing the various items and distributed to the selected outlets by renowned researchers engaged by PPRA for data collection. The information obtained from the outlets collected and analyzed in an effort to come up with an average price for each item, taking into account the different varieties that exist in the market.

In some instances, the price list even includes brand names for the respective items. Even so, it is important to note that the brand names are solely mentioned to emphasize the specificity of the survey and do not necessarily reflect an exclusive recommendation or prescription by PPRA to public entities. The brand names are merely mentioned for the purpose of information and to emphasize the specificity of the survey.

Here’s the latest Market Price Index

Below are the results for the latest Market Price Index survey published by the PPRA in March every year. The market survey for collection of prices was carried out in five towns including, Nairobi, Mombasa, Kisumu, Eldoret and Bungoma towns. Five (5) outlets were targeted per category in all the five (5) towns apart from Nairobi where ten (10) outlets were targeted.

MPI 2021 Documents:

MPI 2020 Documents: