All Kenyan tenders worth less than Kes 1 billion will be reserved for local companies if Parliament passes the Public Procurement and Asset Disposal (Amendment) Bill.
According to the government, the move aims to increase opportunities for local firms in the public procurement sector while tightening regulations to curb unfair competition, particularly involving foreign companies.
“Any procurement of less than one billion shillings shall be awarded to a local firm. (6B) A foreign firm shall be eligible for procurement of contracts of more than one billion shillings where the foreign firm has entered into joint venture procurement with a local firm for not less than thirty percent of the value of the procurement,” read the Bill in part.
The bill seeks to allow foreign firms to participate in procurements valued over one billion shillings only if they form a joint venture with a local firm.
The foreign firm must commit to allocating a minimum of 30 percent of the procurement value to the local partner.
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Further, the amendment seeks to address the issue of unfair competition by introducing tough penalties for those who attempt to bypass the regulations.
Individuals who register companies on behalf of foreign entities to unfairly access local procurement opportunities will face a fine of up to five million shillings, a prison sentence of up to three years, or both.
Similarly, the bill will require that any procurement exceeding one billion shillings must specify the roles that local firms will play in the joint venture partnership, ensuring that the benefits of such contracts are shared with the local economy.
