MP Tables Bill to compel government to pay local suppliers on time, give them an edge over foreigners.

Thika Town MP Eng. Patrick Wainaina addressing the press during the opening ceremony of the Thika Business Trade Fair on October 9 2018.

To Thika Town MP Eng. Patrick Wainaina has tabled a Bill in Parliament that seeks to compel the government to pay local contractors and suppliers on time.

The MP expresses concern that delay in the payment of local contractors when projects are executed has led to many of them being declared bankrupt, some having their property. This, according to Wainaina, has hindered the financial capacity of most local contractors.

In his proposal to amend the “The Public Procurement and Asset Disposal Act 2015 dated 13th September 2018, the first time legislator laments that unlike the locals, foreign contractors and suppliers are accorded preferential treatment by the government owing to the support they (the foreigners) receive from their mother countries.

“Furthermore, imports are on guaranteed payment in form of letters of credit vis a vis local sourced supplies that are usually on credit terms. This favours foreign suppliers at the expense of our local citizens,” reads part of the proposal.

Wainaina proposes that the successful tender needs to be that with the lowest price within a pre-determined threshold of the engineers’ estimate.

The legislator states that his intention is to first and foremost safeguard payments for local suppliers and also give them an edge over foreigners when bidding for tenders.

Remedy.

To rectify these policy anomalies, the MP has suggested to introduce a legislative proposal that will compel all arms of government and departments to pay all their suppliers/contractors within 30 days of contract delivery, failure to which these contractors just walk into the bank to collect their pay and procurement officer in charge be held personally liable. 

“Pursuant to Standing Order No. 114 (1), I wish to introduce a legislative proposal to amend Public Procurement and Asset Disposal Act 2015 to provide:

(a) That all government institutions shall furnish local contractors and sub-contractors with a bank guarantee to secure payments for the performance of tenders,

(b) That the minimum amount of money for exclusive preference for tenders be increased from Ksh. 500 million to Ksh. 1 billion

(c) That in awarding of tenders, preference should be given to Kenyans who bid for up to one-and-a-half times bid by foreigners.

(d) That successful tender price be within a predetermined threshold of the engineers’ estimate.” continued the proposal by Wainaina.

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