The Public Procurement System in Kenya has evolved from a crude system with no regulations to an orderly legally regulated procurement system. The Government’s Procurement system was originally contained in the Supplies Manual of 1978, which was supplemented by circulars that were issued from time to time by the Treasury. The Director of Government Supply Services was responsible for ensuring the proper observance of the provisions of the Manual. The Manual created various tender boards for adjudication of tenders and their awards. A review of the country’s public procurement systems was undertaken in 1999 and established that:
i. There was no uniform procurement system for the public sector as a whole
ii. It did not have sanctions or penalties against persons who breached the regulations in the Supplies Manual, other than internal disciplinary action. Consequently application of the rules was not strict and many of the norms were not followed
iii. The Supplies Manual did not cover procurement of works
iv. The dispute settlement mechanisms relating to the award procedures as set out in the manual were weak and unreliable for ensuring fairness and transparency
v. Records of procurement transactions in many cases were found to be inaccurate or incomplete or absent, which led to suspicions of dishonest dealings at the tender boards.
The systems had other institutional weaknesses that not only undermined its capacity for carrying out their mandates effectively but also led to a public perception that the public sector was not getting maximum value for money spent on procurement.
In view of the above shortcomings, it was found necessary to have a law to govern the procurement system in the public sector and to establish the necessary institutions to ensure that all procurement entities observe the provisions of the law for the purpose of attaining the objectives of an open tender system in the sector.
Consequently the establishment of the Exchequer and Audit (Public Procurement) Regulations 2001 which created the Public Procurement Directorate (PPD) and the Public Procurement Complaints, Review and Appeals Board (PPCRAB). The PPD and PPCRAB, though largely independent in carrying out their activities, had been operating as departments in the Ministry of Finance on which they relied for staff, facilities and funding. Since these institutional arrangements have a potential for undermining the impartiality of these bodies in the long run it was found necessary to create an oversight body whose existence was based on a law.
The Public Procurement and Disposal Act, 2005 was thus enacted and it became operational on 1st January, 2007 with the gazettement of the Public Procurement and Disposal Regulations, 2006.
In January 2016, the Public Procurement and Asset Disposal Act, 2015 (the Act) was enacted. This  massively changed the mandate of the Public Procurement Oversight Authority (PPOA) as it largely assumed the regulatory function which then transited to Public Procurement  Authority (PPA). The Act establishes the Public Procurement Authority among other functions, to monitor, assess and review the public procurement and Asset Disposal system to ensure they respect the National values and other provisions including Article 227 of the constitution on public procurement.

Section 9 of the Act confers the Authority with the following functions:

a) monitor, assess and review the public procurement and asset disposal system to ensure that they respect the national values and other provisions of the Constitution, including Article 227 and make recommendations for improvements;
b) monitor the public procurement system and report on the overall functioning of it and present to the Cabinet Secretary and the county executive member for finance in each county, such other reports and recommendations for improvements;
c) enforce any standards developed under this Act;
d) monitor classified procurement information, including that of specific items of security organs and make recommendations to the Cabinet Secretary;
e) monitor the implementation of the preference and reservation schemes by procuring entities;
f) prepare, issue and publicise standard public procurement and asset disposal documents and formats to be used by public entities and other stakeholders;
g) provide advice and technical support upon request;
h) to investigate and act on complaints received on procurement and asset disposal proceedings from procuring entities, tenderers, contractors or the general public that are not subject of administrative review;
i) research on the public procurement and asset disposal system and any developments arising from the same;
j) advise the Cabinet Secretary on the setting of standards including international public procurement and asset disposal standards;
k) develop and manage the State portal on procurement and asset disposal and ensure that it is available and easily accessible;
l) monitor and evaluate the preference and reservations provided for under this Act and provide quarterly public reports;
m) create a central repository or database that includes—
(i) complaints made on procuring entities;
(ii) a record of those prohibited from participating in tenders or those debarred;
(iii) market prices of goods, services and works;
(iv) benchmarked prices;
(v) State organs and public entities that are non-compliant with procurement laws;
(vi) statistics related to public procurement and asset disposal;
(vii) price comparisons for goods, services and works; and
(viii) any information related to procurement that may be necessary for the public;
n) inform, as applicable, the Cabinet Secretary, Parliament, the relevant County Executive member for finance, the relevant County Assembly or Auditor-General on issues of non-compliance with procurement laws once the relevant State organ or public entity ignores the written directives of the Authority, including material breaches of the measures established under this Act;
o) Generally, report to Parliament and the relevant county assembly;
p) develop a code of ethics to guide procuring entities and winning bidders when undertaking public procurement and disposal with State organs and public entities;
q) in undertaking its functions, cooperate with state and non-state actors with a view to obtaining recommendations on how public procurement and disposal can be improved;
r) ensure the procurement entities implement the preference and reservations and provide data to the Authority disaggregated to indicate the number of disadvantaged groups that have benefitted;
s) develop, promote and support the training and capacity development of persons involved in procurement and asset disposal;
t) perform such other functions and duties as are provided for under this Act and any other relevant law.

Vision

A dynamic public procurement and asset disposal system for a prosperous nation.

Mission

To regulate the public procurement and asset disposal system through monitoring and enforcement for socio economic development in Kenya.

Core Values

In the endeavour to realize its vision and mission, PPRA upholds the following core values:

Intergrity

Innovationess

Customer Focus

Courage

PPA has two boards namely; Public Procurement Authority Board and Public Procurement Administrative Review Board.

PPA is headed by the Director General and has nine directorates namely;

• Research Innovation and Business Systems
• Compliance monitoring, Strategy and Planning
• Complaints and Investigation
• Licensing & Standards
• Corporation Secretary and Legal Services
• Internal Audit
• Corporate Services and Review Board

The Regional Offices’ coordination and supply Chain management departments report directly to the Office of Director General.