A new international study has exposed how poor supervision, lack of coordination among regulators, and limited use of technology allow billions of shillings to leak from Kenya’s public funds through flawed procurement processes.
The report, Peer Reviews of Competition Law and Policy: Kenya, published by the Organisation for Economic Co-operation and Development (OECD) on March 17, 2026, describes a system vulnerable to cartels, price inflation, and offenders who rarely face consequences.
Public procurement, which accounts for about 60% of the government’s annual budget, is especially susceptible, meaning taxpayers bear the brunt of any waste.
Despite strong laws against collusion and bid-rigging, enforcement has been weak. Agencies tasked with overseeing procurement, such as the Competition Authority of Kenya (CAK) and the Public Procurement Regulatory Authority (PPRA), often operate independently, missing suspicious bidding patterns.
Prosecutorial bodies also play a limited role, slowing or blocking the enforcement of penalties, which protects offenders.
Transparency is another major challenge. Most public agencies do not use centralized electronic procurement systems, preventing real-time monitoring.
The OECD recommends expanding digital tools to flag high-risk tenders and detect potential collusion early.
The report also highlights that the CAK suffers from severe funding and staffing shortages. In 2024, the agency’s total budget was about Ksh472 million, with only a small portion allocated to competition enforcement.
With just over 30 staff handling competition issues, the authority struggles to tackle complex procurement cartels.
The study concludes that weak coordination, inadequate enforcement, technology gaps, and under-resourced regulators make Kenya’s procurement system highly prone to abuse.
Inflated contracts drain resources meant for essential services like health, roads, and education.
To address these issues, the OECD recommends:
Strengthening collaboration between government oversight agencies.
Increasing funding and staffing for enforcement teams.
Expanding digital tools to boost transparency and detect suspicious bids.
Implementing stricter penalties to deter offenders.
Ultimately, the report emphasizes that reforming public procurement is not just a regulatory matter but an economic necessity.
A competitive, transparent system could save billions for taxpayers and significantly improve national development and public welfare.
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