This archive report was first published on 23 July 2019.
On July 23, 2019, Mathira MP Rigathi Gachagua proposed amendments to the Public Procurement and Asset Disposal Act to favor local businesses. The proposed changes aim to grant local businesses exclusive access to tenders worth over KSh 1 billion, shielding them from unfair competition from foreign firms.
The amendment also seeks to represent Kenyan interests in tenders exceeding KSh 1 billion, requiring foreign firms to partner with local businesses in joint ventures, with a minimum local stake of 30% of the procurement value.
To prevent potential corruption and misuse, the bill proposes stringent penalties for individuals who register businesses on behalf of non-Kenyans to benefit from the amendment. Those found guilty will face a fine of up to KSh 5 million or three years of imprisonment, or both.
Impact on Kenyan Entrepreneurs ¶
If the bill passes into law, Kenyan businesses will be protected from unfair foreign competition in procurement and tendering processes. This will give them a stake in mega-projects exceeding KSh 1 billion, improve technology transfer through joint ventures, and boost cash-flows in the economy.
The bill is currently undergoing public participation.
