Public procurement practice in Kosovo is often referred as one of the main sources of corruption. Another argument, hence, speaks for the fact that this practice is mainly a result of both central and local level institutions’ behaviour. In this policy note, though, the aim is to highlight the main problems with public procurement at the municipal level. The focus, therefore, is to emphasize the main problems related to  the misuse/circumvention of the public procurement rules of behaviour determined by the law on public procurement with regard to the procurement activities undertaken by municipal institutions. In particular, we refer mainly to secondary data and information acquired from the findings of, inter alia, the office of the Auditor General, Public Procurement Regulatory Commission (Department for Supervision and Monitoring), Procurement Review Body decisions, and from our staff field research activities. Of note is the fact that the annual public procurement market in Kosovo in 2010 was about 800 million EUR, representing approximately 14% of the GDP, including the public procurement activities undertaken by central and local level institutions as well as publicly owned companies.