MPs want tender regulations reviewed
10 January 2014, 20:31
Nairobi - A group of MPs allied to the Coalition for Reforms and Democracy (CORD) called upon the government to stop awarding small contracts to foreign companies.
The legislators argued this denied locally-owned companies the opportunity to grow.
The MPs, led by Mohamed Abbas, the legislator for Ijara Constituency, said foreign companies, which were mainly Chinese-owned, had been unfairly competing for even small contracts with Kenyan contractors.
Abbas said that these companies were not subjected to 30 percent corporate tax which local companies paid and thus the competition for tenders was not fair.
He said it was unfair for foreign companies to be allowed to bid for small contracts of a cost of as low as KES 10 million.
“The Jubilee government came into power on a pro-business slogan when they rallied the electorate to sing their ‘kusema na kutenda’ slogan. They should stick by the slogan and let Kenyans have the smaller contracts free from unfair competition from international companies,” he said.
Abass said at the next session of Parliament, he would push a motion for the new Public Procurement Bill proposing that international companies be barred from bidding for projects of KES 1 billion and below. He said that having such a clause in law would serve to protect the Kenyan businesses from unfair competition from Chinese companies.
Omondi Anyanga, MP for Nyatike, said that the youth and women could not secure tenders as was promised by Jubilee if the Chinese continued to bid for smaller contracts.
The Jubilee government had promised that the youth would get 30 percent of all government contracts.
“Government should go deeper to find out how established these Chinese companies are established at their home countries,” said Anyanga.
He alleged that some Chinese companies got contracts through corruption.
– CAJ News