Local government officials have raised concerns over the centralisation of public procurement under the 2022 law, warning that the approach has led to service delivery delays, inflated costs and operational challenges across public institutions. The concerns were raised on Thursday, February 12, as officials in local government appeared before Parliament’s Public Accounts Committee (PAC) to discuss challenges faced in applying the law. ALSO READ: Public procurement: Four malpractices that can get your company banned in Rwanda Gerard Abiyingoma, the Director General in charge of Corporate Services at the City of Kigali, said the current system has created operational difficulties, particularly in infrastructure maintenance. “In the City of Kigali, we were given one contractor to handle restoration and maintenance works for all public buildings. This includes more than 212 schools, six hospitals, 28 health centres, 161 cells, 35 sectors and the city buildings themselves,” Abiyingoma said. He noted that managing such a large portfolio under a single contractor is challenging and often leads to delays. ALSO READ: Rwanda’s procurement profession steps into new era with watchdog but questions linger “Previously, schools or sectors could directly source contractors to maintain their buildings. With centralised contracts, that flexibility is gone,” he said. Abiyingoma added that decentralised procurement would be better since it leads to lower costs. This is because local contractors could source materials nearby and negotiate better prices. “For example, materials like bricks are cheaper when sourced locally. A nationwide contractor factors in transport costs, which increases prices,” he said, adding that emergency repairs are also handled faster when contractors are based nearby. He further pointed to challenges in computer maintenance in schools, saying centralised contracts require damaged equipment to be transported to central service points, delaying teaching and learning. ALSO READ: New public procurement policy focuses on efficiency, environmental protection – officials “In some cases, computers supplied to cell offices cost up to Rwf2 million, yet similar equipment can be found on the open market at around Rwf800,000,” he said. “Delays in supply affect service delivery.” Abiyingoma also criticised procurement ceilings applied to institutions such as schools and hospitals, which are categorised as non budget agencies and are restricted from procuring beyond Rwf10 million per transaction. “A school may have an annual procurement plan of Rwf100 million, yet it cannot exceed Rwf10 million per procurement, even when basic items such as firewood alone can cost Rwf28,000 per bundle,” he said. Jeanne Nyirahabimana, Executive Secretary of Eastern Province, talked about concerns related to price manipulation by bidders. “Some contractors deliberately quote very low prices to win tenders, only to abandon projects midway,” she said, noting that procurement entities are often obliged to award contracts to the lowest bidder. Pascal Ngendahimana, Executive Secretary of Northern Province, said the absence of performance security for procurements below Rwf20 million has contributed to contractor misconduct. “Some contractors leave projects incomplete because they have nothing to lose,” he said. MP Eugene Musolini warned that excessive centralisation could disrupt essential services, citing waste collection as an example. “If one contractor is responsible and becomes overwhelmed, waste collection delays could have serious public health implications,” he said. Permanent Secretary at the Ministry of Local Government Bob Gakire said such challenges are not unusual after the adoption of new laws. “Some approaches may appear effective during drafting but reveal weaknesses during implementation,” he said. “What matters is refining the law and closing the gaps.” PAC Chairperson MP Valens Muhakwa said the committee is assessing whether the 2022 law should be amended or replaced. “At the end of these consultations, we will determine whether the law requires amendment or a complete overhaul.”
