ANALYSIS OF PUBLIC PROCUREMENT BID DISPUTES MANAGEMENT SYSTEM IN KENYA

Abstract

Public procurement plays an important role in timely and quality service delivery for governments.
However, the public procurement process is often disrupted by bid disputes. The frequency and
time taken to resolve bid disputes is influenced by a number of factors. The objective of this paper
was to establish the status and factors influencing public procurement bid disputes management
in Kenya. Content analysis of all the bid dispute cases heard and determined by Public
Procurement Administrative Review Board (PPARB) including those that escalated to the high
court, the court of appeal and the supreme court between 2001 and 2020 were reviewed. Analysis
of descriptive data and association testing was thereafter conducted. The paper has made
contribution to body of knowledge regarding the state of and factors influencing public
procurement bid disputes in Kenya. The findings of the paper were consistent with principal agent
theory, stakeholder theory and theory of constraints and have offered propositions that could
benefit policy makers and public procurement practitioners in the management of bid disputes in
public procurement. The paper recommended that policy review be initiated to allow for
Alternative Dispute Resolution (ADR) in bid disputes and facilitation of access to justice by
vulnerable bidders.
Key Words: Public Procurement, Bid Disputes, Public Procurement Administrative Review
Board.