Preference and Reservations in Public Procurement for Small and Medium Enterprises in Nairobi

Abstract

The purpose of this study was to cletennine the opportunities and challenges presented to Small and Medium Enterprises by the Public Procurement and Disposal (Preference and Reservations) Regulations, 2011 in Nairobi County. In the recent past there has been increasing interest among many stakeholders 111public procurement. This interest has been aroused by the fact that the government is the largest single buyer. Public procurement is not only a budget implementation strategy tool but also used to achieve targeted social goals. A descriptive survey was adopted for this study. The population of interest in this study was all small and medium enterprises (SMEs) that are based in Nairobi County from which a sample of 310 firms was used. Primary data was collected using structured questionnaires after which descriptive statistics was used as the method of data analysis since some of the issues in the study involved perception. Generally, the results of the study reveal that most enterprises identified insufficient capital, limited information about public procurement and lack of transparency in the tendering processes as the major challenges hindering their active involvement in public procurement. Entrepreneurs were of the opinion that the government should establish an SME support bureau to support them while pursuing business opportunities, public or otherwise. From the research findings it can be concluded that the level of involvement of small and medium enterprises in public procurement is low. It is recommended that the government establish SME support bureaus across the country to not only sensitize and guide small and medium entrepreneurs on public procurement but to also educate and assist on among other issues business registration and best business practices.