The National Assembly has approved a Bill to limit foreign firms in local tenders. Molo MP Kimani Kuria proposed the Public Procurement and Asset Disposal (Amendment) Bill. It prioritizes local companies in public procurement.
The Bill excludes foreign firms from tenders below Sh1 billion. For contracts over Sh1 billion, foreign firms must partner with local companies. These partnerships must allocate at least 30% of the contract value to local firms. Local tasks must be clearly specified. Foreign firms must seek the Attorney-General’s advice before finalizing agreements. They must also submit technology and skills transfer plans.
The Public Procurement Regulatory Authority will monitor these plans to ensure local capacity building. After the National Assembly’s approval, the Bill will move to the Senate for review.
The Bill promotes local industries by setting a minimum threshold for contracts to Kenyan-owned firms. It also prioritizes goods and services from the counties funding the projects.
To prevent unfair practices, it bans subcontracting local tenders to foreign firms. Exceptions apply only if the required skills or services are unavailable locally. The Bill mandates 40% of procurement goods and services come from local providers. The Cabinet Secretary will enforce these regulations.
The Bill enforces strict penalties for violations. Individuals registering companies to favor foreigners face fines of up to Sh5 million or three years in jail. Foreigners falsely claiming Kenyan identity risk fines of up to Sh5 million or five years in jail.
This legislation supports local businesses, strengthens the economy, and ensures fair competition in Kenya’s procurement system.
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