Constraints to Small and Micro Enterprises’ Participation in Public Procurement in Kenya: A Case of Cleaning Services Industry in Nairobi Central Business District

Abstract

The public procurement market in Kenya like other countries worldwide deal with a wide range of supplies. Though these contracts vary mainly in size, some are clearly within the capabilities of Small and Micro Enterprises. However, Small and Micro Enterprises are sidelined from participating in public procurement despite their qualifications, sizes and level of production and despite this preferential treatment of Small and Micro Enterprises, comparative tallies of public contracts secured by Small and Micro Enterprises in Nairobi Central Business District against those secured by large enterprises are still very small. The study examined the constraints to Small and Micro Enterprises participation in public procurement. The study was guided by the following specific objectives: To assess the extent to which legal/regulatory framework constraints affect participation in public procurement by Small and Micro Enterprises in the cleaning industry in Kenya; To evaluate the extent which ethics affect participation in public procurement by Small and Micro Enterprises in the cleaning industry in Kenya; To examine the extent to which financial requirements constraints affect participation in public procurement by Small and Micro Enterprises in the cleaning industry in Kenya; and To investigate the extent to which information access constraints affect participation in public procurement Small and Micro Enterprises in the cleaning industry in Kenya. The research design used was descriptive and exploratory. The study established that there is a clear Legal/Regulatory framework established in the country to knob public procurement though these guidelines are not open to public scrutiny. The conditions for tendering are not the same for each tenderer and there are ethical malpractices sighted during the process. Small and Micro Enterprises encounter financial challenges which include financial regulations and shortage of own financial resources. Information on public procurement and tendering to the Small and Micro Enterprises is not adequately available as most respondents were not aware of its existence. The research concluded that the existence of the legal framework makes it difficult for upcoming Small and Micro Enterprises to compete with the established players thus discouraging their participation. Ethical aspect hinders the Small and Micro Enterprises from participating in tendering due to in-transparency in the process. Financial requirement is a hindrance. Information on public procurement and tendering is not adequately available to the Small and Micro Enterprises thus poor access to the little information availed to them.

Keywords: Public Procurement, Bidding, Small and Medium Enterprises, Tender, Corrupt and Fraudulent practices, Cleaning services.