Government Procurement is the act of obtaining goods or services for a public agency.
Due to the impressive size of government related purchasing activity in Kenya, which is often highly regulated, a substantial number of business operators find it profitable to cater almost exclusively to government procurement needs.
Also called public procurement or public tendering.
This is what you’ll need;
- A business
To apply for a tender, you need to have a business that’s registered at the Attorney General’s office. Your business can be a sole proprietorship, partnership, limited company or a co-operative.
- Proper representation
Your enterprise must have at least 70 per cent of its membership made up of youth (aged 18-35), women or persons with disabilities. The leadership must be 100 per cent made up of people that fall under these categories.
- The documentation
If your business is a partnership, you’ll require a partnership deed from a lawyer. If it’s a limited company, you’ll need Memorandum/Articles of Association, as well as a CR12 form – which is the official confirmation of who the majority shareholders are – from the Registrar of Companies. For a co-operative, you’ll need a constitution and membership details. You’ll also need to apply for a PIN and Tax Compliance/Tax Exemption Certificate from the Kenya Revenue Authority’s website or offices. Your business is required to have a bank account, and for AGPO specifically, you may require a reference from the institution your business banks with when you decide to put in a bid.
Once your business is registered, you’ll need relevant certifications from professional and regulatory agencies. For instance, businesses interested in construction need a letter or certificate from the National Construction Authority and Engineers Board of Kenya; those bidding for electrical contracts need certification from the Energy Regulatory Commission; while those keen on environmental impact assessments need to be registered with the National Environment Management Authority. Other important agencies include the National Council for Persons with Disability, Insurance Regulatory Authority and the Law Society of Kenya.
- Register for AGPO
You can apply online for an AGPO certificate, or visit your county headquarters and register there. Huduma Centres also process AGPO approvals and certificate renewals.
If registering online, follow the following steps:
Step 1: Log into www.agpo.go.ke and click on register.
Step 2: Create an account by filling in your personal details, email address and by setting a password. Once this is complete, an activation link will be sent to your email.
Step 3: Activate your AGPO account by clicking on the link sent to your email.
Step 4: Log into the AGPO system as a ‘returning user’ and input the email address and password you set in Step 2.
Step 5: Register your business by providing the information required, and attaching the required scanned documents. The system will let you know if your application has been successful.
Being prequalified simply means that you are notifying other institutions that your company is registered to offer services or offer goods.
Once you are prequalified, you have an advantage over fellow bidders. You can only register for prequalification after a company of interest has issued a Notice for Prequalification.
Here is what you need to get prequalified:
– Your company profile
– PIN/VAT Certificate
– Business Registration Certificate/ Certificate of Incorporation
– Tax Compliance Certificate
– AGPO registration
– A copy of your client list
– List and copies of previous contracts and assignments.
– In the case of a professional services firm, copies of certificates and credentials of the directors or key officials.
– Properly filled in application form.
- The bid
Look out for tender notices in newspapers or online, and provide the necessary details. Take your time when filling in the documents as a small error can cost you. Once you submit a proposal, you cannot take it back. The institution where you’re applying will look for bidders with the least outrageous budgets. Weigh your financial propositions, specifying everything, including, and source of funds, raw materials, expected duration and overhead costs. Provide a breakdown of the steps you’ll take to complete the project.