MP Kimani Ichung’wah pushes for Bill to boost local contractors in gov't projects

Speaking during parliamentary debate, Ichung’wah emphasized the importance of the Public Procurement and Asset Disposal (Amendment) Bill, 2024, which aims to tackle the long-standing issue of foreign dominance in government contracts, especially in the construction sector.

If enacted, the Bill will require a significant portion of subcontracting work on government projects to be reserved for local businesses. Ichung’wah noted that this legislation is critical for fostering technology transfer and skills development, creating a skilled workforce capable of managing future large-scale projects.

“For too long, major projects funded by foreign donors or governments, such as highways and airports, have seen foreign entities dominate not only the primary contracts but also subcontracting opportunities. This practice has stifled the growth of local businesses and denied Kenyans the chance to gain expertise,” Ichung’wah said.

He cited the Standard Gauge Railway (SGR) as a missed opportunity, where local contractors were largely excluded from participation.

“If we had insisted on the inclusion of local subcontractors 10 years ago, we would now have Kenyan companies capable of extending our railway system,” he explained.

The proposed amendments seek to ensure that foreign contractors working on public projects prioritize Kenyan subcontractors for tasks such as bush clearing, road markings, and other lower-level works. This measure aims to directly benefit local companies while building a sustainable pathway for skill development.

The bill, now under Parliamentary review, also mandates foreign contractors to integrate technology and knowledge transfer as part of their project delivery.

“We must ensure that international firms do not just bring capital and labor but also empower our people with the skills needed to take on complex projects,” Ichung’wah said.

Ichung’wah outlined a vision where Kenyan contractors are not only able to handle domestic infrastructure projects but also compete on the global stage. He stressed the importance of building local capacity for projects such as the expansion of the SGR to Malaba or the construction of new terminals at Jomo Kenyatta International Airport (JKIA).

“If we pass this bill, future generations will no longer have to depend on foreign contractors to build critical infrastructure. Instead, we will have local experts capable of delivering world-class projects,” he said.