The East African Portland Cement Company spends more than Sh4 billion annually on procurement of goods and services. By any standards, this is large-scale expenditure that calls for high-level efficiency and accountability.
As a rule, the company’s procurement function is guided by the Public Procurement and Disposal Act, 2005, as well as the Public Procurement and Disposal Regulations, 2006.
The company has put in place systems and structures not only to delineate the objectives of the procurement function but also streamline the procurement process to minimise risks and costs.
These systems are aimed at instilling discipline, openness and honesty while developing a level and competitive supply chain. Management has ensured that only qualified staff handles the procurement process to ensure compliance with the government regulations.
Accordingly, the following procedures are strictly observed:
- Open tendering for goods and services worth more than Sh5 million.
- Restricted tendering for complex and specialised goods and services worth more than Sh5 million. For goods and services worth more than Sh20 million, authorisation is sought from the Director of Public Procurement.
- Direct tendering for goods and services worth more than Sh500,000 that can be obtained from one source or manufacturer.
- Proposals are invited for consultancy services.
- Quotations are invited for purchases valued below Sh5 million.
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