UN targets to buy more goods from small companies

A new programme to train Kenyan entrepreneurs on doing business with the United Nations has been launched.

The plan, which will see more than 500 entrepreneurs trained on procurement and rules at the UN, could see thousands of Kenyan firms awarded lucrative contracts by the organisation.

Alexander Barabanov, the chief of the administrative services at the United Nations Office at Nairobi (UNON), said over the past four years, procurement volume placed with Kenyan vendors by the agency had increased by 50 per cent, reaching Sh4.3 billion ($48 million) in 2010.

“One of the main objectives is to increase the number of Kenyan vendors in the UN vendor database,” said Mr Barabanov at a business seminar to launch the programme.

An expanded vendor database, he said, would also help the UN to purchase goods and services at competitive rates.

Major items procured by UNON include stationery, computers, vehicles, computers and software and services such as security, transportation and printing.

The seminar on searching and applying for opportunities at the UN is sponsored by the organisation and the Foreign Affairs ministry.
“To ensure that the increased needs are met, the ministry consulted, culminating in an agreement on the need to give the Kenyan private sector the opportunity to bid for contracts for the provision of goods and services,” said Patrick Wamoto, the political and diplomatic secretary at the Ministry of Foreign Affairs.

Apart from the increased volumes of business done with Kenyan vendors at UNON, the regional procurement office at Entebbe said volumes handled by Kenyan suppliers hit Sh8.1 billion ($91.2 million) in 2010.

Ms Fouzia Abass, chief of the regional procurement office, said volumes with Kenyan businesses handled by her office rose from Sh2.5 billion ($27.8 million) in 2007 to Sh4.3 billion ($48.6 million) in 2009.

The UN requests quotations for supplies below Sh3.56 million ($40,000), invites bids for goods and services above that threshold and awards contracts above Sh6.67 million ($75,000).

She said in 2011/2012, her office was targeting to establish contracts of Sh20.74 billion ($233 million) compared to Sh11.72 billion (131.7 million) in 2010/2011.

Mr Wamoto said the UN spends more than Sh35.6 billion ($400 million) yearly and that the programme would ensure the needs of UNON are met. Over the past two years reforms, which saw the Nairobi office upgraded, led to a bigger budget.
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