State to meet procurement officers over local content rule

By Ronald Owili

The ministry of Industry, Trade and Cooperatives is set to meet all government procurement officers to monitor and evaluate the implementation of the 40 percent local content rule as prescribed in the public procurement and disposal act.

Investment and Industry Principal Secretary Julius Korir says some suppliers in the country have been exploiting the local content rule that has seen local manufacturers lose out.

This comes as the Kenya Association of Manufacturers looks into enhancing the manufacturing sector’s output using five key pillars.

Section 157 of the Public Procurement and Disposal Act stipulates that all firms participating in tenders involving public procurement should ensure that at least forty percent of their materials are from local suppliers and manufacturers. It however appears there’s no strict direction that the goods be local.

This as seen local suppliers take advantage of the law by importing products while neglecting locally manufactured goods.

In the third quarter of 2016, the manufacturing sector shrunk 1.9%. As the current account narrowed 10.4% in the same period, domestic export earnings also went down by 12.3 per cent to Ksh 122.4 billion during the third quarter of 2016 with Kenya losing its EAC share.

The Kenya Association of Manufacturers has now developed 5 pillars to accelerate growth in the sector in 2017, as the election period intensifies.

The pillars focus on policy, legal and regulatory reforms, creating a level playing field, enhancing sector competitiveness, making Kenya an export manufacturing hub and securing its future.

The sector currently contributes 10.5% to GDP, and is expected to jump to 15% by 2019.

  

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