Parliament passes Bill to prioritise local contractors in tenders award
By Lucy Mumbi |
The MP highlighted that local contractors have faced persistent disadvantages in the procurement landscape, often losing opportunities to foreign firms.
Members of Parliament have approved the Public Procurement and Asset Disposal (Amendment) Bill, ushering in significant reforms aimed at empowering local contractors and enhancing fairness in the allocation of government tenders.
Sponsored by Molo MP Kuria Kimani, the Bill introduces measures to address systemic challenges faced by Kenyan firms, ensuring they receive greater opportunities in public procurement.
The legislation is seen as a crucial step toward fostering economic growth and inclusivity."This amendment ensures that contracts below Sh1 billion will exclusively be awarded to local contractors," Kuria said.
For projects exceeding Sh1 billion, international firms will only qualify if they collaborate with Kenyan companies in joint ventures, a move designed to ensure capacity building and technology transfer.
The MP highlighted that local contractors have faced persistent disadvantages in the procurement landscape, often losing opportunities to foreign firms.
"This Bill is about giving Kenyan businesses a fair shot. It levels the playing field, enabling local entrepreneurs to compete effectively and thrive in their industries," he said.
A key provision in the Bill addresses delayed payments, a longstanding issue that has stifled contractor growth. "Delayed payments will be a thing of the past," Kuria assured.
The Public Procurement and Asset Disposal Bill 2024, will address delayed payment for our local contractors. Ensuring timely payment will inject liquidity into the economy & foster a more vibrant entrepreneurial ecosystem.
— Hon Kuria Kimani- MP Molo (@KuriaKimaniMP) November 28, 2024
To ensure fair competition among our local contractors… pic.twitter.com/vrpmxTEX3m
By streamlining the payment process, he said, the law will create a healthier cash flow system, revitalising entrepreneurship and sustaining economic activity.
The Bill also seeks to enhance transparency and accountability in public procurement. Kuria noted that the legislation would prevent monopolies and foster fair competition, empowering local contractors to become industry leaders.
"This is about fostering economic inclusivity, supporting local enterprises, and ensuring that public procurement serves as a catalyst for growth. It’s a commitment to using public resources to empower Kenyans and build a better future," he said.
Kuria called on stakeholders, including government agencies, contractors, and private sector players, to embrace the new framework.
"This Bill is a collective opportunity to transform our procurement systems and empower our local businesses," he said.
The approval of the amendment signals a new era for Kenyan contractors, promising a more equitable and inclusive economic environment while reinforcing the country’s development goals.
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