- Several Chinese firms are engaged in mega road construction projects in Kenya.
- As per the state policy, foreign contractors have to sub-contract a third of their works to Kenyans.
- Kenya National Highways Authority (KeNHA)’s data reveals that nine Chinese firms have so far offered only 9.5 percent of the Sh129.68 billion worth of road constructions deals to local contractors.
Over the past two decades, Kenya has undertaken an ambitious infrastructure investment programme, such as construction of new roads, upgrading of infrastructure facilities and rehabilitation. Most of these mega projects are being implemented by foreign firms mainly from China. Local firms have been kept outside the purview of these lucrative contracts, accounting for a meagre share of the total value of awarded contracts.
One reasons cited for the low-key engagement of local companies is the government tendering process that demanded prior experience on big projects, which many lacked, due to decades of underinvestment in the sector. Also the past poor performance of some local contractors also contributed to the hesitation to involve local contractors.
Several Chinese firms are engaged in mega road construction projects in Kenya. As per the state policy, foreign contractors have to sub-contract a third of their works to Kenyans. Kenya National Highways Authority (KeNHA)’s data reveals that nine Chinese firms have so far offered only 9.5 percent of the Sh129.68 billion worth of road constructions deals to local contractors. KeNHA has cautioned the Chinese contractors that they will be penalised if they breach the rule and do not fulfil the allocation of 30 percent of local content to involve local contractors. The objective of the 30 percent rule was to increase the involvement of local firms in multi-billion-shilling State contracts.
KeNHA clarified in a statement that the firms can hire locals, source materials within Kenya and add that as local content. It added that their final payment at the closure of the project will be cleared subject to fulfilment of the local content clause. The rule could affect state corporations of China that have been undertaking projects funded by Beijing and negotiated under a government-to-government pact. For instance, China Railway No.10 Engineering Group has offered Kenyans a mere 0.9 percent of the Sh1.31 billion construction of the eight-kilometre dual carriageway.
Read More:
https://trendsnafrica.com/kenyas-sc-examining-controversial-building-bridges-initiatives/
https://trendsnafrica.com/chinese-foreign-minister-held-talks-with-kenyan-president/
