Speaking during the 9^th NSSF Suppliers Forum at Mestil Hotel in Kampala, NSSF Managing Director, Patrick Ayota said by the end of the year, the Fund will have spent at least shs827 billion on Procurement of the shs827 billion, works took a lion’s share at shs653.9 billion, shs118 for suppliers, shs39.1 billion for non-consultancy services and shs16.1 billion for consultancy services.

“As an institution entrusted with the savings of millions of Ugandans, we recognize that every shilling spent must create value-not only in cost efficiency, but in service quality risk management and positive social impact,” Ayota said.

“Right now, our coverage is around 15% but we want to increase it to 50% of all the working population saving with the Fund, grow the Fund to shs50 trillion from the current shs25 trillion and customer satisfaction to reach 95% by 2025.”

Ayota told the suppliers that procurement is evolving beyond cost-cutting into a strategic function.

“It is about delivering value, driving transformation and fostering partnerships for sustainable economic growth. As one of Uganda’s largest institutional investors, NSSF’s procurement strategies will be future-focused, innovative and resilient.”

He said going forward, the procurement function for NSSF will be driven by AI, automation and blockchain, data-driven decision making for efficiency and cost optimization and e-procurement platforms to ensure transparency and real-time insights.

“We shall also ensure ethical sourcing and environmental responsible procurement , green supply chains and circular economy principles as well as well as compliance with global sustainability regulations and standards,” Ayota said.

Executive Director of Public Procurement and Disposal of Public Assets (PPDA), Benson Tumuramye said public procurement is a strategic tool to deliver national development goals.

He noted that 60% of the country’s budget goes through public procurement, noting this is an opportunity for suppliers to benefit.

“The law has reserved products for you( suppliers).  Anything below shs15 billion must be done by local contractors. This means you are a Ugandan and those are deliberate efforts on local content,” Tumuramye said.

Edward Ssengendo Kkuob, the director Monil Cleaning and Fumigation Services Limited urged fellow suppliers to always take time in submitting bids.

“You are not going to win everyday because of different reasons but keep trying. Sometimes you will be disqualified but if you don’t show up, someone else will do  and with time they will win bids,” Ssengendo said.

He urged suppliers on compliance with the various requirements.

The appointments of Dr. Ndandiko and Dr. Kyaligonza align with PPDA’s objectives to enhance public procurement regulation, stakeholder engagement, institutional capacity, and technology-driven efficiency.

The Public Procurement and Disposal of Public Assets Authority (PPDA) has ushered in two new board members, marking a significant transition in its leadership. The inauguration ceremony, held on Friday, 28 February 2025, also paid tribute to the outgoing members for their dedicated service.

The newly appointed board members, Dr. Charles Ndandiko and Dr Isaac Kyaligonza bring a wealth of expertise in public procurement, governance, and public-private partnerships (PPPs). Their appointments are expected to strengthen PPDA’s strategic direction as the authority pursues key reforms in line with its 2020/21-2024/25 Strategic Plan.

Dr Ndandiko, a distinguished expert in public-private partnerships and procurement, has worked in Afghanistan, Ethiopia, Malawi, and Uganda, influencing policy reforms on procurement procedures. His consultancy roles with global institutions such as the United Nations Economic Commission for Africa (UNECA), the World Bank, and the African Development Bank (AfDB) have positioned him as a leader in sustainable procurement practices.

“I am honored to join the PPDA Board and look forward to leveraging my expertise in procurement and public-private partnerships to enhance Uganda’s public procurement system. I am eager to collaborate with fellow board members and stakeholders to advance the necessary reforms for Uganda’s development,” said Dr Ndandiko.

Dr Kyaligonza, an authority in procurement and supply chain management, has over 25 years of experience, having served in key roles within the Ugandan government, including the Ministry of Finance and the Ministry of Energy. His leadership in handling complex procurement functions and international partnerships is expected to bring valuable insights to the board.

“It is a privilege to serve on the PPDA Board. I am committed to contributing to policy advancements that will drive transparency, accountability, and efficiency in Uganda’s public procurement processes,” remarked Dr Kyaligonza.

PPDA Board Chairman Julius K. Ishungisa expressed gratitude to the outgoing board members, Dr Levi Kabagambe and Dr. David Kiyingi, acknowledging their contributions to the authority’s mandate and achievements in procurement reforms.

Executive Director of PPDA, Benson Turamye, echoed this appreciation, stating, “Dr Kabagambe and Dr Kiyingi have played a pivotal role in steering the authority through transformative periods. Their visionary leadership has laid a strong foundation for future reforms, and their legacy will be remembered.”

The appointments of Dr. Ndandiko and Dr. Kyaligonza align with PPDA’s objectives to enhance public procurement regulation, stakeholder engagement, institutional capacity, and technology-driven efficiency.

Mr. Turamye highlighted the importance of continuity in PPDA’s reform agenda. “A new board presents an opportunity to build on the progress of outgoing members while embracing fresh perspectives. Together, we will drive PPDA’s mission of ensuring transparency, accountability, and value for money in public procurement.”

With 2025 marking a crucial phase for procurement reforms, the newly appointed board members are expected to play a key role in shaping the sector’s future. As PPDA continues to pursue innovation and policy improvements, its expertise will be instrumental in achieving Uganda’s development ambitions.

The Auditor General’s report for the financial year ending June 30, 2024, has revealed significant procurement irregularities across several government entities.

The report highlights that a total of Shs 2.93 billion in procurements, involving five entities and 14 procurement evaluations, failed to follow the prescribed evaluation criteria, as outlined in the bidding documents.

This breach of regulation 5(1) of the Public Procurement and Disposal of Assets (PPDA) Evaluation Regulations, 2023, raises serious concerns about fairness and transparency in government contracts.

Edward Akol, the Auditor General, pointed out that this failure to adhere to proper evaluation procedures undermines fair competition and fosters perceptions of bias and favouritism in the awarding of contracts.

Such irregularities could expose entities to legal challenges from unsuccessful bidders, administrative reviews that delay contract execution, and unnecessary legal expenses.

Beyond procurement issues, the report also raised alarms about non-performing loans, which amount to Shs919 billion.

According to the report, “Included in the receivables under Note 20 are loans to private and state enterprises of Shs7.7 trillion, which includes non-performing receivables of Shs919 billion that have not been performing for over 20 years.”

The Auditor General noted that a provision for bad debts of Shs 0.247 trillion had been made, but much of these receivables appear irrecoverable, with some private enterprises that received loans no longer existing, and others failing to acknowledge their liabilities in financial statements.

The likelihood of recovering these funds is minimal, and attempts to gain approval for write-offs from the Attorney General and Parliament have been unsuccessful.

The Auditor General recommended that the Accounting Officer continue engaging with relevant stakeholders to explore debt recovery options or initiate the write-off process for dissolved companies.

For existing enterprises, the government could consider converting outstanding debts into equity as an alternative solution.

These findings underscore the need for urgent reforms to enhance procurement oversight and implement effective debt recovery strategies. Stakeholders are now calling for stronger measures to ensure greater financial accountability and safeguard public funds.

The slow pace of implementation, coupled with unresolved technical issues, is threatening both the government’s investment and its ability to modernize procurement nationwide.

The Auditor General’s report has raised significant concerns over the system’s delayed rollout, technical failures, and non-compliance with procurement standards, all of which jeopardize its long-term viability.

Introduced in 2016, the e-GP system has only been fully implemented in 36 of the 200 planned government entities—just 18% of the target—despite nine years of effort.

Some of these 36 entities are only using the system in part, as it remains incomplete. The system’s oversight and reporting modules, crucial for generating procurement reports, have also failed to operate correctly, producing errors when attempting to produce key documentation.

Many government entities continue to rely on traditional manual processes, meaning the full potential of the e-GP system remains untapped.

The Auditor General has warned that with rapid advancements in technology, the government risks investing in a system that could become outdated before its full implementation.

Originally designed to automate procurement processes, the e-GP system was intended to streamline interactions between the government and businesses while reducing reliance on paper-based methods.

However, despite significant investment, many government agencies are still processing procurements outside the e-GP platform, undermining the goal of digital transformation.

The Auditor General has called on the Accountant General to prioritize completing the development and rollout of the e-GP system to all planned entities.

Without urgent action, the government risks missing out on the intended benefits, such as enhanced procurement practices and better fiscal management.

The Accounting Officer explained that the system’s slow rollout was initially due to unreasonably high costs demanded by the original vendor for change requests.

In June 2020, a new vendor was sourced for system development and enhancement, with clear delivery schedules in place.

However, the development contract with the new vendor will expire on December 4, 2024, and alternative options for system enhancement and rollout are currently under discussion, with a new target date of July 1, 2025.

A Visionary for the Procurement Profession

David Kiyingi’s tenure on the PPDA Board was marked by his profound insights, passion, and commitment to advancing the procurement profession in Uganda. Dr. Levi Kabagambe, in his farewell remarks, referred to Kiyingi as the “father of formal procurement and supply management education and training” in Uganda. Kiyingi’s work at Makerere University Business School (MUBS) to advocate for the recognition of procurement as a professional field was a critical turning point for the sector.

His leadership and efforts to formalize the procurement profession have earned him admiration from colleagues and stakeholders. PPDA Board Chairman, Julius K. Ishungisa, praised Kiyingi for his humility and insightful contributions, noting that he always had a profound impact whenever he spoke. Fellow Board member Rita Namakiika echoed similar sentiments, describing Kiyingi as both a colleague and a true friend.

Contributions to Public Procurement Policies

Kiyingi’s impact extended beyond his role on the PPDA Board to significant contributions in shaping public procurement policies in Uganda. Executive Director of PPDA, Benson Turamye, highlighted Kiyingi’s instrumental role in initiating the sustainable procurement policy, which remains a cornerstone of Uganda’s procurement reforms. His leadership and dedication helped to create an environment that fostered better practices in public procurement.

Kiyingi’s appointment as the first procurement professional to represent the Minister of Finance on the PPDA Board was a testament to his expertise and influence. His advocacy for public procurement has been crucial in pushing for policies that promote transparency, sustainability, and efficiency in the procurement process.

A Farewell with Gratitude

During his closing remarks, Kiyingi expressed deep gratitude for the opportunity to serve on the PPDA Board. He shared that procurement was not just a profession for him, but a true passion, and reaffirmed his commitment to continue advocating for the procurement profession through his roles at the Ministry of Finance.

Although his tenure with the PPDA Board has come to an end, Kiyingi assured all stakeholders that he would continue to work towards advancing procurement practices in Uganda. His legacy, built on years of dedication, passion, and vision, will continue to influence the future of procurement in the country.

David Kiyingi’s legacy in Uganda’s procurement sector is undeniable. His advocacy for modern procurement practices, his efforts to secure recognition for the procurement profession, and his policy contributions will continue to shape the industry for years to come. His wisdom, humility, and tireless dedication to the profession have left an indelible mark on the procurement community.

As the PPDA Board, Executive Committee, and stakeholders bid farewell to Kiyingi, we express our deepest thanks for his exceptional service and leadership. We look forward to continuing our collaboration with him in his future endeavors as he remains a key figure in the promotion and development of procurement in Uganda.

PPDA extends its heartfelt appreciation to David Kiyingi for his years of service, and we are confident that his continued support for the procurement profession will lead to further growth and transformation in Uganda’s public procurement sector

Gazetted on 22^nd March 2024, Section 63(2) of the amended PPDA Act, Cap 205 provides for reservation schemes aimed at promoting the participation of registered associations of women, youth, and persons with disabilities (PWDs). According to the guidelines, 15% of an entity’s procurement budget is reserved for these groups. Additionally, procurements valued at UGX 30 million or less within Central Government entities, and those valued at UGX 10 million or less within Local Government entities, are exclusively reserved for registered associations of women, youth, and PWDs.

Consequently, on 21^st November 2024, PPDA issued a public call through newspapers, inviting enterprises owned by women, youth, and PWDs to register on the national special interest groups database. Building on the responses received, the Authority organized a one-day training session on 22^nd January 2025 for youth groups and enterprises across the country that had responded but were not yet registered on the Electronic Government Procurement (e-GP) system. This training was conducted at the Authority’s headquarters in Nakasero, Kampala.

The session was held in collaboration with the Africa Freedom of Information Centre (AFIC) under the Open Contracting Partnership (OCP)’s LiFT Programme. Its purpose was to equip and empower representatives of these groups with information on registration processes and best practices for successful bidding, thereby enabling them to actively participate in Uganda’s public procurement processes.

Officiating the training, PPDA Executive Director Benson Turamye reaffirmed the Authority’s commitment to operationalizing the PPDA Act amendments. He emphasized the importance of these initiatives in fostering the participation of special interest groups in public procurement.

“PPDA will work closely with Procuring and Disposing Entities and monitor contract implementation to ensure compliance with these guidelines. We urge all service providers, suppliers, and contractors to organize and prepare to benefit from these reservation schemes. The Authority will also support you by addressing challenges through sensitization, training, and advisory services, while tackling corruption issues that have previously hindered effective participation,” he said.

Gilbert Sendugwa, the Executive Director of AFIC, echoed the call for government entities to fulfill their obligations in implementing reserved quotas for special interest groups. He also encouraged the recipient groups to diligently fulfill their contractual obligations once awarded government contracts. “Effective execution enhances credibility and increases the chances of securing future lucrative opportunities,” he added.

To ensure equitable access to these opportunities, PPDA is extending its registration and capacity-building centers to regional offices in Mbale, Gulu, and Mbarara. This move aims to ensure that youth, women, and PWDs in these regions benefit from this strategic initiative. Furthermore, PPDA is partnering with the Inspectorate of Government (IG) to utilize its widespread network of offices across the country to receive corruption-related complaints, should any unethical government officials attempt to exploit or undermine special interest groups.

In the long term, PPDA envisions that this strategy will contribute to sustainable development through the economic and social empowerment of women, youth, and PWDs.

The Ministry also wants an additional Shs30bn to monitor the Parish Development Model.

The request was made by Ben Kumumanya, Permanent Secretary Ministry of Local Government while appearing before Parliament’s Local Government Committee to present the Ministry’s 2025/26 National Budget Framework Paper.

“Article 176(2)(g) of the Constitution require these leaders to do monitoring, but how are they going to monitor if they aren’t facilitated? The last support was given in 2014/15 which is 10years ago. The lifespan of a vehicle which is especially field oriented is 5years. Now the few of them are surviving which are 10years old, but the rest are in the garages. We look forward to be supported so that this money can be put in the budget,” said Kumumanya.

Lawmakers like Yusuf Mutembuli (Bunyole East) and Pius Wakabi (Bugahya County) asked fellow lawmakers to support the Ministry’s pleas, saying the delayed provision of vehicles for these local leaders have hampered service delivery as some of them hijack vehicles meant for key sectors like water and health at the districts.

Wakabi remarked, “As a Committee, I think we need to support the Ministry in procuring vehicles for local leaders, because in most cases, these leaders have ended up hijacking these other vehicles for other sectors like water and those are essential sectors in the district. So, you find an LCV driving the car meant for the water sector in the district.”

While commenting on the same matter, Mutembuli said, “Mine has even failed to come to Kampala because even the departmental vehicles are also in another situation. So, I think this is a very serious issue, we need to ensure that we provide vehicles to our political leaders so that they can monitor, supervise and also carry out other activities just as we the MPs are facilitated with vehicles.”

During the meeting, Susan Amero (Amuria DWR) called on Government to impose the requirement of education qualification for all local council politicians, arguing that failure by some local politicians to comprehend English has hampered the supervision of Government Programs especially the PDM at the grassroots because most of them are bullied by elites at districts, whom they are meant to supervise.

Amero remarked, “We have a big problem, the Local Councilors who are supposed to be supervising these problems down there, some of them can’t even read anything. They don’t even know how to write anything apart from putting a thumb on the paper, wouldn’t it be right at this time when we are working on the constitutional amendments that we could at least out some qualifications somewhere for someone to become a Councilor. Because you can’t employ a graduate as Parish Chief and then you leave the Councilor who is supervising that graduate who can’t even write any sentence in English. What is that Councilor going to do with the graduate?”

She attributed the failings of the Parish Development Model on the lack of education qualifications by Councilors who are meant to supervise the Parish Chief noting, “The PDM isn’t succeeding literally because we don’t have anyone down there supervising, by the time we wake up from Kampala to go and supervise, things have gone wrong and it isn’t easy to bring back what has gone wrong. We have a challenge in the Local Governments because the Councilors are manipulated by a few elites in the districts because they don’t understand what they are doing.”

On his part, Wakabi asked the Ministry to consider imposing education qualification requirement for all people aspiring to contest as local politicians and enforce the provision of the same to undergo mandatory training at the National Leadership Institute in Kyankwanzi.

“Local leaders play an important role in implementing Government programmes, you as ministry, do we still need any LCIII who has no education? What is your proposal? I would also wish that now Nobert Mao, Minister of Justice and Constitutional Affairs is coming up with Constitutional Amendments, why can’t you propose that before somebody contests for any local leadership should first go and have training at National Leadership Institute (NALI)? At least a two-month training so that we can have better services,” noted Wakabi.

PPDA isn’t just overseeing procurement; it’s actively reshaping it to work better for the people. One of the most significant yet often overlooked efforts is capacity building. 

Mercy Kyoshabire, Manager of Procurement Capacity Building at PPDA, reveals, “We’ve trained over 1,500 procurement officers, ensuring that 90% are certified in procurement management. This isn’t just about ticking boxes; it’s about equipping these officers to manage risks and make informed decisions in real-time.” This dedication to improving skills is driving a massive shift, transforming Uganda’s procurement process into one that’s more efficient and professional.

But that’s just the start. Perhaps the biggest disruptor PPDA has introduced is the move to digital. PPDA’s push for an electronic procurement system is creating a transparent, fraud-resistant environment where businesses of all sizes, from small to large, have an equal shot at government contracts. 

“With e-procurement, we are not only increasing efficiency but also minimizing the chance for manipulation or fraud,” says Kyoshabire. This digital transformation is a game-changer for a sector that’s been known for lack of transparency.

Even more revolutionary is PPDA’s focus on inclusivity. The public may not realize that PPDA is now reserving government contracts specifically for women, youth, and persons with disabilities. “For local governments, procurements under 10 million shillings are now reserved for these groups,” Kyoshabire explains. “For central government, contracts below 30 million shillings will also be reserved for these categories.” 

This policy is not just about equity; it’s about reshaping how procurement works at its very core, ensuring that groups often sidelined in business have a direct stake in the country’s development.

PPDA’s work is about more than just processes; it’s about creating a procurement system that drives real, tangible change. As Mercy Kyoshabire puts it, “Public procurement should be a tool for economic empowerment, fairness, and national development.” The authority’s bold actions are setting the stage for a future where public procurement works for everyone.

PPDA, established in 2003, has spent the past two decades working to transform Uganda’s public procurement sector into one of fairness, transparency, and inclusivity.

They commended the proposal for tackling challenges like the high cost of international tenders, limited access for local companies, and rigid procurement processes.

The proposed order aims to enable local innovators to develop impactful solutions to national challenges while accessing government tenders more easily.

The new ministerial order defines innovation as a new idea, product, process, or service transformed into a solution that creates value for citizens and the country.

“In the current system of public procurement, there is little room for innovation. When a government or institution decides to procure, such as acquiring a system, they can only allocate funds for a completed product,” said Patrice Nostalgie, a software engineer.

“This means that the procurement process would only allow the purchase of a fully finished system, not one that is still under development,” he added.

The proposed order introduces Article 8, which mandates the use of a design contest method.

Article 28 of the order highlights that the procuring entity should start on an open market consultation by engaging potential suppliers and market stakeholders through gathering information, assessing market capabilities, and define the requirements of a public procurement related to innovations tenders.

Depending on the nature of the tender, the procuring entity may request the innovator to provide references to prove his or her technical experience, with the submission of the technical solution proposal and its prototype and the financial proposal or business model, or both to the procuring entity through e- procurement system.

The order aims to introduce modern procurement models that favor innovations like pre-financing and design-build projects.

“For tech startups, these changes open up opportunities to earn the government or public institutions as their clients for their innovative solutions without the burden of traditional contract and financing hurdles,” Nostalgie said.

The software engineer believes startups will benefit from clearer bidding criteria and increased transparency, which helps level the playing field against larger competitors.

“By supporting innovation-driven projects, this directive will accelerate growth for small and agile tech companies within Rwanda’s tech ecosystem,” he noted.

The order allows procuring entities to adopt competitive and innovative procurement processes that ensure the acquisition of the most effective solution to a given challenge.

A key element of this method is that procuring entities agree to pay for an innovative solution if it meets their requirements as outlined in the request for solutions.

Selection criteria for innovators should be clearly defined to ensure transparency and fairness in the process, according to the directive.

The change allows innovators to compete even if they are local companies without international project experience. Previously, for a local company to compete on a national scale, it needed proof of delivering similar systems at a large scale, often requiring partnerships with international firms to meet eligibility criteria.

Nostalgie observed that the government can now invest in projects that are still in the idea stage. This is because the directive allows these projects to be divided into phases, with progress evaluated at each step.

“If a phase is promising, the project moves forward. This phased approach recognizes that failure is part of innovation and ensures there is no liability for costs if a phase fails, as the risk was pre-agreed,” he explained.

Angelo Gitego, the chief executive at Xanahealth (former IvuliroTech) told The New Times that awarding international tenders for government projects can be costly for the country sometimes.

“For instance, the integrated electronic case management system developed for the Ministry of Justice costed over a billion Rwandan francs. Yet, there was sufficient local talent and capacity to create such a platform at a lower cost,” he said.

The new order introduces a new element known as a ‘design contest,’ where specific needs are identified, and local companies are invited to compete by proposing tailored solutions.

“Through this competitive process, participating firms not only develop innovative platforms but also provide more cost-effective and contextually relevant solutions,” he noted.

The entrepreneur highlighted that this model underscores the potential of leveraging local talent to address national challenges while promoting homegrown innovation and reducing dependency on external solutions.

Under the pre-commercial procurement method, the contract has three phases; the demonstration phase, the solution development, and the testing and transitional experimentation phase.

Kunda argued that the methodology will support the growth of research and development for solutions that do not have commercial viability yet.

Supported by OCP and UK’s Foreign and Commonwealth Development Office (FCDO), the platform is part of a larger data-driven reform that aims to improve the integrity of Rwanda’s procurement system while attracting more small- and women-led businesses to the procurement market and bolstering oversight of a notoriously high-risk sector.

Rwanda’s Umucyo system (meaning “transparency” in Kinyarwanda) is recognized as one of the most successful e-Government Procurement projects in Africa. Benchmarked on South Korea’s KONEPS, the system is used by all national and local government agencies to conduct almost all procurement procedures.

But despite the system’s wide adoption, unlocking Umucyo’s data for analysis has proved challenging, and affected the government’s ability to track the procurement system’s performance in areas such as efficiency, value for money and contract implementation. The lack of publicly available procurement information has also limited competition (as OCP’s recent regional research on barriers for women-led contractor shows), as well as contract monitoring by civil society.

Publishing standardized open data on public procurement

Launched publicly at the APPN General Assembly on 12 November, the new open contracting portal features machine-readable data published in the Open Contracting Data Standard (OCDS) format. This allows users to trace procedures across the planning, tender, award and contracting stages of the procurement cycle and to conduct system-wide analysis. The real-time data can be downloaded in common spreadsheet formats or accessed via API.

“By making procurement data machine-readable and accessible, the OCDS allows the tracking of key events, the comparison of contracts, and the identification of irregularities more effectively. Key data points or fields are essential for measuring key performance indicators and progress toward outcomes such as integrity, efficiency, competition, or value for money,” highlights Joyeuse Uwingeneye, the Director General of the RPPA.

Dozens of performance and corruption risk indicators can already be calculated using the current dataset. This will allow user-friendly data analytics and visualization tools to be developed in the next phase of the project, which will be based on the needs and priorities of different stakeholders.

Building coalitions and public oversight

Efforts are also being made to strengthen collaboration among procurement stakeholders including government procurement officers, auditors, entrepreneurs, engineers and other industry representatives, and transparency advocates. Convened by the recently revived Contracts Monitoring Coalition, government and civil society representatives are developing skills in using contracting documents and data to identify and fix procurement issues and inform policy decision-making.

Public oversight activities are being piloted in the districts of Rwamangana and Musanze through a cooperative agreement between Transparency International Rwanda and the local mayors, with support from OCP, that will see monitors track infrastructure projects worth RWF 12 billion (US$9.6 million).

TI-Rwanda has also established a call center that will facilitate complaints from bidders that can then be passed on to the competent authorities.

As Uwingeneye told us earlier this year, “you need to have visibility of what you are going to procure,” if you want to rethink procurement policies to build economic resilience, environment sustainability, and inclusive growth. With the new open contracting, this visibility now extends to all stakeholders from government to businesses to civil society.