This archive report was first published on 18 August 2021.
On August 18, 2021, the Committee on Finance and National Planning in the Kenyan Parliament rejected the Public Procurement and Asset Disposal (Amendment) Bill 2020, citing concerns over the quality of locally made products.
The proposed law aimed to amend section 157(9) of the Public Procurement and Assets Disposal Act 2015, requiring foreign tenderers to source at least 40% of their supplies from local contractors.
However, the committee found this requirement 'not feasible,' as quoted in its report. Proponents of the bill argued that it would protect local jobs and curb the repatriation of profits by foreign companies.
The Treasury had opposed the proposal, stating that the law already provides for minimum quantities of products and services that foreign contractors can source locally.
The push to compel foreign contractors to source more products and services locally comes amid concerns that non-Kenyan firms are undertaking multi-billion infrastructure projects, including the Nairobi Expressway and the Nairobi to Mau Summit toll highway.
