Kenya Association of Manufacturers (KAM) has expressed concern over rejection by Parliament of the Public Procurement and Asset Disposal (Amendment)( No. 3) Bill.
This Bill proposed to amend the law requiring that all foreign tenders source less than 40% of the materials from local firms.
The Bill also sought to increase the amount for tenders where Kenyans are given exclusive preference from KSh 500 Million to KSh 20 Billion.
KAM says rejection of Bill favours foreign manufacturers
“By rejecting the Bill, Parliament sends a clear message to local manufacturers, creators and innovators that the country is not keen on nurturing their businesses,” said KAM in a statement.
The lobby group said the move also erodes the competitiveness of Made in Kenya products and gives an unfair advantage to foreign products which have already encroached on the local market.
” Policies such as these move contrary to the goals of being a self-sufficient and pushes us further into being a trading nation”, said Phyllis Wakiaga, Chief Executive Officer, KAM.
In 2015, President Uhuru Kenyatta gave a directive that requires 40% of all public procurement to be reserved for locally produced goods and services through the Buy Kenya Build Kenya(BKBK) Policy.
Already, 334 manufactured products have been gazetted by the Cabinet Secretary for Industrialization, Trade and Enterprise Development.
” This Bill would have supported the maintenance and strenghening of supply chains to ensure there are no disruptions in the future as a result of COVID-19 pandemic effects,” said Ms Wakiaga.
The lobby is now urging parliament to review its decision on the Bill to protect local industries and jobs.
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