{"id":565,"date":"2020-11-10T09:00:58","date_gmt":"2020-11-10T06:00:58","guid":{"rendered":"https:\/\/scale.co.ke\/blog\/?p=565"},"modified":"2021-11-01T15:00:27","modified_gmt":"2021-11-01T12:00:27","slug":"is-low-value-procurement-method-friendly-for-smes","status":"publish","type":"post","link":"https:\/\/scale.co.ke\/blog\/is-low-value-procurement-method-friendly-for-smes\/","title":{"rendered":"Is Low-value Procurement Method Friendly for SMEs?"},"content":{"rendered":"

Low-value procurement<\/strong> is a simplified procurement method that may be used if the estimated value<\/strong> of the goods, works or services does not exceed a maximum value<\/strong> of KSh 50,000 for Good and Services or Ksh 100,000 for Works.<\/p>\n

This method is useful when a public entity needs to procure low-value items that are not procured on a regular or frequent basis and are not covered in a framework agreement subject to the maximum thresholds prescribed in the regulations.<\/p>\n

Here\u2019s what the Procurement Laws say about Low-value Procurement<\/h4>\n

The use of Low-value procurement method is governed by Sections 107-108 of the Public Procurement and Asset Disposal Act Revised Edition 2016<\/a> as outlined below:<\/p>\n

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107. A procuring entity may use a low-value procurement procedure if:<\/p>\n

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  1. The entity is procuring low value items which are not procured on a regular or frequent basis and are not covered in framework agreement;<\/li>\n
  2. The estimated value of the goods, works or non-consultancy services being procured are less than or equal to the maximum value per financial year for that low-value procurement procedure as may be prescribed.<\/li>\n<\/ol>\n

    108. The procedure and conditions for the use of low-value procurement method by different classes of public entities or different classes of goods, works or services being procured shall be as prescribed in the Regulations<\/a>.<\/p>\n<\/div>\n

    Within the 2020 Regulations, the below are the set conditions for the consideration to use this procurement method by a public entity:<\/p>\n

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    92. A procuring entity may use low value procurement method pursuant to Section 107(b) of the Act, where \u2014<\/p>\n

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    1. \n
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      1. The estimated cost of the goods, works or services being procured per item per financial year shall be as per the threshold matrix in the Second Schedule;<\/li>\n
      2. No benefit would accrue to a procuring entity in terms of time or cost implications if a procuring entity uses requests for quotations or any other procurement method;<\/li>\n
      3. The procedure is not being used for the purpose of avoiding competition; or<\/li>\n
      4. The procedure has been recommended by the head of procurement function after conducting a market survey and approved by the accounting officer or such person delegated in writing by the accounting officer.<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<\/div>\n

        The Maximum Level of Expenditure for Low-value Procurement<\/h4>\n

        Guided by the Second Schedule of the Public Procurement and Assets Disposal Regulations (2020), where the procurement method is Low-value Procurement, the threshold matrix is provided as follows:<\/p>\n