The Cabinet Secretary to the National Treasury issued a gazette notice on 24 July 2020 confirming 2 July 2020 as the commencement date of the Public Procurement and Asset Disposal Regulations, 2020 (the Regulations).
The Regulations, which were first published on 22 April 2020, repeal the Public Procurement and Disposal Regulations, 2006 (the 2006 Repealed Regulations) and the Public Procurement and Disposal (Preference and Reservations) Regulations, 2011 which had been enacted under the Public Procurement and Disposal Act, 2005 (now repealed). The 2006 Repealed Regulations and the 2011 Preference Regulations have been in use even after the enactment of the new Public Procurement and Asset Disposal Act in 2015 (the 2015 PPADA).
The confirmation of the Regulations commencement date is a welcome clarification to procuring entities and suppliers with respect to the effective date of the new Regulations, a question that has been the subject of confusion among procurement parties as well as dispute before the Public Procurement Administrative Review Board.
The new Regulations are intended to facilitate the implementation of the provisions of the 2015 PPADA and to provide further guidance in relation to various aspects of the procurement and asset disposal process under the 2015 PPADA.
We have prepared an overview of the key changes to public procurement practices introduced by the new Regulations which procuring entities and suppliers should take note of. We have also highlighted the potential impact of the new Regulations on private businesses involved in supplying goods or services to public entities and lenders and investors in such private businesses.
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