Procurement represents one of three core, non-payroll processes that make up budget execution. Akin to other budget execution processes, it happens continuously throughout the year, based on the procurement plan. Procurement is therefore best viewed as a cycle rather than a one-off process. Every procurement cycle runs through three phases - order management, delivery management and account management. Every department is responsible for the efficient running of its procurement processes, with Finance and Economic Planning providing the necessary technical support.


Upstream: Budget Estimates, Budget Appropriation, Budget Implementation Circular, Work Plan, Procurement Plan, Cash Flow Forecast, Commitment Control

Downstream: Asset and Liability Management, Quarterly Reports, Annual Report(s)


For every department, exchequer instructions provide the basis for initiating the three-phase procurement cycle. The first phase concentrates on order management from initiating purchase or procurement requisitions through the tender or acquisition process to selection and ordering. The output from this phase is a Local Purchase Order (for goods) or Local Service Order (for services). Contracts may also be used for high-value, or component-complex orders, while other forms of supplier or vendor engagement may apply to medium to long-term procurement. Commitment control is critical in ensuring that only approved orders are funded. The second phase - delivery management – covers steps from LPO/LSO/contracting to confirmed delivery of goods and/or services through the initial receipt and acknowledgement, to inspection and acceptance to formal receipt of said goods and/or services according to specification. Account management, the third phase, links earlier commitments at the order stage to confirmation at the delivery stage to the cash payments system under the County Treasury, as supplier dues (accounts payable) are settled.


Laws and Regulations

Public Procurement and Asset Disposal Policy (Draft). National Treasury. 2019

Public Procurement and Asset Disposal Act, 2015

Public Finance Management Act, No 18 of 2012

Public Finance Management (County Government) Regulations 2015

Guidelines and Tools

Circular on Reporting Requirements and Procurement Planning. Public Procurement Oversight Authority (PPOA). 2009

County Public Participation Guidelines. Ministry of Devolution and Planning (MoDP), Council of Governors (CoG). 2016

Other Resources

Guideline to Public Expenditure Management – Budget Execution, The International Monetary Fund

Treasury Reference Model – World Bank/IMF (Hashim and Allan Paper). 2001