Mathira MP, Rigathi Gachaguap proposed the amendment of the Public Procurement and Asset Disposal Act to favor local businesses. The Member of parliament proposed amendment of the Act to grant local businesses exclusive access to tenders under Kenya Shillings One Billion. These changes will shelter local businesses from unfair competition from foreign firms.
The amendment also represents Kenyan interest in tenders more than one billion, proposing that such tenders can only be awarded to foreign firms under a joint venture with a local firm for not less than thirty percent of the value of the procurement.
To curb arising issues of corruption and possible misuse of the amendment, the bill states proposes stringent penalties on individuals who might be tempted to register a business on behalf of non-Kenyans with the intention of benefitting from the bill shall be liable upon conviction to a fine of not exceeding five million shillings or three years of imprisonment or both.
What does this bill mean to kenyan entrepreneurs?
If the bill passes into law, Kenyan businesses shall be protected from unfair foreign competition in procurement and tendering process. Second, Kenyans will have a stake in mega-projects exceeding the value of one billion shillings. Third, joint ventures will improve technology transfer to local businesses, improving their capacity to undertake projects. Lastly, the bill will improve cash-flows in the economy since money form infrastructural investments will be availed to local enterprises.
The bill is under public participation stage.
