Kenyan contractors are set to reap significant benefits following the approval of the Public Procurement and Asset Disposal (Amendment) Bill by Parliament.
The Bill is sponsored by Molo Member of Parliament Kuria Kimani.
This groundbreaking legislation marks a turning point in the country’s procurement systems, addressing long-standing challenges faced by local firms and positioning them for growth.
Kuria said the Bill is a lifeline for local contractors and a strategic move to drive economic inclusivity and development.
"This amendment ensures that contracts below Sh1 billion will exclusively be awarded to local contractors," he explained.
"For larger contracts exceeding Sh1 billion, international firms will only qualify if they enter into joint ventures with Kenyan companies. This approach guarantees that local firms benefit through capacity building and technology transfer from their international counterparts," he said.
For years, local contractors have faced unfair competition, often being sidelined in favor of foreign companies.
"This Bill is about giving Kenyan businesses a fair shot," Kuria emphasised. It levels the playing field, enabling local entrepreneurs to compete effectively and thrive in their industries," he said.
The Bill also addresses the issue of delayed payments, which has been a major setback for contractors.
Kuria said delayed payments will be a thing of the past," he assured.
"By streamlining the payment process, this legislation creates a healthier cash flow system, revitalizing the entrepreneurship ecosystem and sustaining economic activities across the board."
Beyond improving fairness in contract allocation, the Bill aims to enhance transparency and accountability in public procurement systems.
"This legislation will curb monopolies and prevent unfair competition, empowering local contractors to become competitive leaders," Kuria noted.
He termed it as a vital step toward building an economy that truly benefits its people.
Kuria highlighted the broader vision of the Bill as a strategic tool for national development.
"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 added.
The MP 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 Public Procurement and Asset Disposal (Amendment) Bill marks the beginning of a new era for Kenyan contractors, promising a more equitable, transparent, and inclusive economic landscape.
