Why Open Tenders are highly popular
Open tenders have no allocated minimum expenditure amount whereas the maximum is determined by the budget allocated for the particular procurement.
Open Tenders are underlined by the fundamental principle of allowing a free and fair chance of participation by everyone. Further, the procurement of goods, works and services through open tenders normally do not have an allocated minimum level of expenditure. Whereas the maximum amount you can quote is determined by various factors but mostly the funds allocated in the budget for the particular procurement.
Any entity in Kenya may apply for Open tenders from the National and County governments. This means ensuring the advertisement happens through a publicly (and freely) accessible channel such as newspapers or online.
By law, the procurement officer is obligated to take the necessary steps to ensure the invitation to tender is brought to the attention of those who may wish to submit tenders. The advertisement of a tender is a legal process that is closely governed by the procurement laws.
Advertising an Open Tender
Below is the advertisement process of an Open Tender as outlined within the 2016 Revised Edition of the Public Procurement and Asset Disposal Act:
- The accounting officer of a procuring entity shall take such steps as are reasonable to bring the invitation to tender to the attention of those who may wish to submit tenders.
- Despite the provisions of subsection (1), if the estimated value of the goods, works or services being procured is equal to, or more than the prescribed threshold for county, national and international advertising, the procuring entity shall advertise in the dedicated Government tenders’ portals or in its own website, or a notice in at least two daily newspapers of nationwide circulation.
- In addition to subsection (2) a procuring entity shall —
- use Kenya’s dedicated tenders portal or any other electronic advertisements as prescribed; and
- post advertisements at any conspicuous place reserved for this purpose in the premises of the procuring entity.
- In regard to county-specific procurements pursuant to section 33, the procuring entity shall advertise the notice inviting expressions of interest in the dedicated Government tenders portal; in its own website, or in at least one daily newspaper of county-wide circulation.
- Where the estimated value of the goods, works or services being procured is below the prescribed threshold for national advertising, the procuring entity shall advertise using the options available in subsection (3)(a) and (b).
Not adhering to the above advertising processes is enough grounds for a tender award to be overturned by the Public Procurement Administrative Review Board (PPARB).
The Maximum Level of Expenditure for the use of Open Tender
Guided by the Second Schedule of the Public Procurement and Assets Disposal Regulations (2020), where the procurement method is National Open Tender, the threshold matrix is provided as follows:
| Procurement Method – National Open Tender (Section 96 of the Act) | ||
| Goods | Works | Services |
| Maximum level of expenditure shall be determined by the funds allocated in the budget for the particular procurement. | Maximum level of expenditure shall be determined by the funds allocated in the budget for the particular procurement. | Maximum level of expenditure shall be determined by the funds allocated in the budget for the particular procurement. |
| No minimum | No minimum | No minimum |
| Procurement Method – International Open Tender (Section 89 of the Act) | ||
| Goods | Works | Services |
| Maximum level of expenditure shall be determined by the funds allocated in the budget for the particular procurement. | Maximum level of expenditure shall be determined by the funds allocated in the budget for the particular procurement. | Maximum level of expenditure shall be determined by the funds allocated in the budget for the particular procurement. |
| No minimum | No minimum | No minimum |
How to find such opportunities
Most Government tenders are open tenders and they provide a good opportunity for businesses to get accustomed to the processes of public procurement. On any given day, we provide hundreds of open tender opportunities available that you can freely access on Scale.
Check them out and apply for those that suit your business starting today and share with us your experience in the comment section below.
This article is part of the Procurement Methods blog series.
