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{
    "id": 1503203,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1503203/?format=api",
    "text_counter": 443,
    "type": "speech",
    "speaker_name": "Molo, UDA",
    "speaker_title": "Hon. Kuria Kimani",
    "speaker": null,
    "content": " I rise to move that the Public Procurement and Asset Disposal (Amendment) Bill of 2024 be now read a Second Time. The Bill embodies our commitment to fostering economic inclusivity, promoting local enterprises, and ensuring that public procurement serves as a strategic tool for national development. By introducing clarity to address inefficiencies and reinforcing accountability, this amendment Bill aligns with best practices globally while tailoring solutions to the unique needs of our nation. Public procurement accounts for a significant portion of our GDP. As articulated by economists such as Keynesians, government spending is a vital tool in stimulating economic activity. By channelling resources through fair, transparent and equitable procurement systems, this Bill will not only reduce market inefficiencies but also be a catalyst for the economic growth of our great Republic. Clauses 4 and 10 reflect on the deliberate effort to integrate local content policies. That is a cornerstone of industrial development in many emerging economies. Michael Porter, on competitive advantage, tells us that this will foster local industries, enhance value addition, build competitive industries and strengthen the domestic economy. Prioritising local goods and services in procurement is not merely patriotic, but economically prudent. The provisions of Clause 11 and related clauses are to reserve specific procurement thresholds for local firms. This is a recognition of the structural challenges that are faced by Kenyan contractors. Historically, Kenyan contractors have been side-lined in favour of foreign firms, even for contracts well within the capacity of our local contractors. By reserving contracts that are Ksh1 billion or less for local firms and ensuring joint ventures for larger contracts, we aim to create a level playing field. This approach is consistent with the principle of comparative advantage that ensures domestic firms build expertise in areas where they are best positioned. Moreover, incentivising joint ventures with a monthly 30 per cent local participation ensures technology transfer and capacity building. This Bill expressly says that contracts that are Ksh1 billion and below shall be reserved to local contractors, unless there is no availability of expertise or technology in Kenya, which the Bill envisioned they would not. For contracts that are above Ksh1 billion, we are making it a requirement that they must enter into a joint venture with a Kenyan firm and get 30 per cent of that venture be owned by Kenya. We have outlined that there must be technology transfer where we do not have. This is because we cannot continue to have the hard-earned resources of this country benefiting people from other countries. We should make sure that the resources of this country, through proper public procurement, remain here to ensure economic growth. This Bill also seeks to foster transparency and accountability. Transparency is a linchpin of good governance as it is outlined in best practices, such as the Open Contracting Data Standards (OCDs). Public Procurement Systems must prioritise openness and accessibility to curb corruption and inefficiency. By requiring proper documentation and public disclosures, this Bill will ensure that there is trust in the procurement process, which is very critical for economic and political stability. Clause 13, which expounds on the clarification of tenders, is a practical measure to eliminate ambiguities that often lead to disputes or unfair practices. Clause 22 underscores the importance of compliance by accounting officers emphasising their roles as custodians of public goods. This Bill restores the responsibility of procurement, not just on the accounting officer, but also on the head of the procurement in that entity. This is because sometimes when"
}