A/HRC/41/43/Add.2 446, 2016) and the Code of Governance for State Corporations. 16 The Working Group welcomes the fact that existing regulations seek to foster transparency and accountability in State-owned enterprises, including through reporting on corporate governance. It also highlights that some regulations and guidelines for such enterprises provide for gender sensitivity in terms of board representation. 17 14. The experts encourage the Government to specify that State-owned enterprises have the obligation to respect human rights and to lead by example, including by adopting explicit human rights targets and monitoring achievement of them, with mechanisms for accountability and follow-up. The Government should also develop specific guidelines on how to report on human rights performance, and adopt clear criteria to determine when State-owned enterprises should conduct human rights due diligence. In addition, such enterprises should provide remediation for adverse human rights impacts that they have caused or contributed to, as further developed in the report of the Working Group on the issue of human rights and transnational corporations and other business enterprises (A/HRC/32/45). B. Public procurement 15. Article 227 of the Constitution requires public procurement to be conducted in a manner that is fair, equitable, transparent, competitive and cost-effective. Under the Public Procurement and Asset Disposal Act, 30 per cent of the budgetary allocation in procurement and asset disposal planning must be reserved for enterprises owned by women, youth, persons with disabilities and other economically disadvantaged groups. 18 The Working Group observed with appreciation that these measures had opened up new business opportunities for women-owned companies. The Access to Government Procurement Opportunities programme, which aims at facilitating participation by enterprises in public contracts, should be extended to population groups in rural and indigenous areas in particular, to ensure that they fully benefit. 19 16. The experts learned that the conditions set by the Government might not always include respect for human rights as a prerequisite and that the conditions set for award of public contracts prevented those who receive public tenders from respecting human rights. It is noted, for example, that the amount provided in contracts for government cleaning or security services may not be sufficient to allow the contractor to pay a minimum wage. The State should therefore explicitly include respect for human rights as a condition underpinning tender process and the whole procurement cycle, and implement effective monitoring systems for the verification and enforcement of human rights requirements. It should also require that suppliers and contractors conduct human rights due diligence. The preparation of guidelines for public buyers to integrate the Guiding Principles and human rights into the procurement process would be useful. VI. Micro-, small and medium-sized enterprises and the informal economy 17. Micro-, small and medium-sized enterprises occupy as much as 85 per cent of the market. Microenterprises account for 81.1 per cent of employment in micro-, small and medium-sized enterprises. 20 These enterprises play an important role in generating economic opportunities. As they are often embedded in the community context, they have a good understanding of local context and maintain links with civil society. The Working 16 17 18 19 20 Kenya, Public Service Commission and State Corporations Advisory Committee, Mwongozo: The Code of Governance for State Corporations (January 2015). Kenya, Capital Markets Authority, Code of Corporate Governance Practices for Issuers of Securities to the Public 2015, para. 2.1.5. Public Procurement and Asset Disposal Act, No. 33 of 2015, art. 53 (6). See https://agpo.go.ke/pages/about-agpo. Kenya National Bureau of Statistics, Micro, Small and Medium Establishments: Basic Report 2016. 5