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Boost for Local Contractors: Parliament Seeks Public Views on Bill

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Nyakundi Report

Newsroom 2 min read

This archive report was first published on 5 August 2020.

August 5, 2020 - The Kenyan parliament has invited the public to share their views on a bill aimed at giving local contractors a competitive edge in government contracts.

The Public Procurement and Assets Disposal (Amendment) Bill, 2020, tabled by Thika Town MP Patrick Wainaina, seeks to amend the existing law to favor local firms in government contracts.

According to the bill, county and national governments will be required to pay contractors within three months of supply if passed.

The bill also proposes to increase the threshold for local firms from Sh500 million to Sh1 billion, which is expected to unlock opportunities for Kenyan businessmen with financial muscles to take up state contracts.

Special groups such as people with disabilities, gender, and the youth have also been considered in the proposal.

Under the proposed amendments, local contractors will be considered even if their quote is one and a half times more than that of foreign contractors.

The bill also seeks to increase the number of international contractors that must source locally to 60% from the current 40% and ensure that the price of a contract is within 15% of the lowest quote.

The parliament is calling for public views with an intention to amend the bill to fill gaps that might be used by rogue contractors to quote unrealistic and low prices just to win the contract.

As the parliament seeks public views, Kenyans have been given until August 11 to forward their submissions to the Clerk of the National Assembly on the proposal.

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