Kenya’s public procurement system is largely functional, transparent on paper and governed by clear laws, but it is being undermined by corruption, poor compliance and the persistent failure to pay suppliers, according to the National Secretary General of the Association of Public Sector General Suppliers, Simon Gichuki.
Speaking during a Radio Generation interview on Monday, Gichuki said government suppliers are often misunderstood as "tenderpreneurs", yet many are legitimate businesses that have supplied the public sector for decades without engaging in bribery.
He explained that public sector supply covers a vast ecosystem, ranging from road contractors and consultants to companies supplying schools, hospitals and administrative offices.
“With a national budget running into trillions, the government is the single biggest buyer in the economy,” he said.
“Development spending alone brings in thousands of contractors, consultants and suppliers who must all operate under the Public Procurement and Asset Disposal Act.”
He noted that Kenya has more than 40,000 public institutions that procure goods and services, including an estimated 22,000 public schools, about 3,000 public hospitals and thousands of administrative offices.
Despite this scale, the association represents about 8,000 members, a fraction of the roughly 100,000 suppliers believed to do business with government.
According to the Secretary General, the procurement process itself is clear but demanding. Tender documents can run into hundreds of pages once supporting paperwork is included, such as tax compliance certificates, company registration documents, audited accounts, professional certifications and records of previous work.
“Procurement is document-heavy for a reason,” Gichuki said. “If you miss one compliance requirement, your bid is disqualified at the preliminary stage. That is why people wrongly think tenders are about connections, yet in reality, documentation determines who proceeds.”
He welcomed the government’s move towards electronic procurement systems, saying automation would reduce paperwork, increase transparency and limit human interference.
Gichuki dismissed claims that the electronic Government Procurement (e-GP) system demands unnecessary information, noting that all documents required are already issued by government agencies such as KRA and the Business Registration Service.
However, he warned that resistance to digital systems could lock out many suppliers. “Those who comply will continue supplying government, while others will be left behind because of misinformation,” he said.
Despite improvements in procurement systems, he identified corruption and pending bills as the most serious threats facing public sector suppliers.
The Secretary General cited recent remarks by the Head of Public Service calling for officials to actively disrupt corruption, arguing that the problem has become widespread and deeply entrenched.
“There is no acceptable level of corruption,” he said. “Pending bills exist because someone, somewhere, is refusing to do their job or is diverting funds meant to pay suppliers.”
He explained that unpaid bills have a devastating ripple effect on the economy. When a supplier is not paid, employees lose jobs, statutory deductions go unpaid, tax revenues fall and entire supply chains collapse.
He pointed to struggling media houses and companies that have shut down after failing to recover money owed by government institutions.
Gichuki criticised county governments that blame predecessors for unpaid bills, arguing that liabilities are inherited alongside assets. “You cannot reset a county every five years,” he said, warning that unpaid contractors could increasingly influence electoral outcomes if leaders fail to respect business obligations.
While acknowledging that some suppliers have successfully sued government entities and eventually been paid, he noted that many fear legal action due to possible retaliation. “People are afraid to speak out, but there are success stories,” he said.
He concluded by urging suppliers to understand procurement laws, comply fully with requirements and demand accountability, insisting that paying suppliers on time is not just a legal obligation but an economic necessity.
