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{
    "id": 1503205,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1503205/?format=api",
    "text_counter": 445,
    "type": "speech",
    "speaker_name": "Molo, UDA",
    "speaker_title": "Hon. Kuria Kimani",
    "speaker": null,
    "content": "mistakes happen, the liability falls on the accounting officer whereas the procurement has been done by the head of procurement. Any impropriety in a tender will impose the criminality to the beneficiary of that tender, so that the beneficiary, the accounting officer and the officer who breached the law, all become accountable, since these are the custodians of our public funds. On matters delayed payments, Clause 30 of the Bill seeks to address that chronic issue. This is a problem that has perpetuated economic stagnation among lower contractors. It is disheartening to see businesses being auctioned every Thursday. And when you look at the kind of businesses being auctioned, it is people with excavators and tippers. By this you can tell the kind of businesses these people do. Delayed payments not only cripple businesses, but also public trust in government systems. Therefore, ensuring that there is timely payment, which is defined here as payment within the quarter, will inject liquidity into the economy and foster a more vibrant entrepreneurial ecosystem. This will align with the liquidity preference which underlines the importance of cash flow for sustaining economic activity. Efficient payment systems are not merely administrative reforms; they are critical economic interventions. This Bill also seeks to expand opportunities for citizen contractors. As I have explained, the proposal to increase maximum contract amount for citizen contractors from Ksh500 million, as currently provided in the law, to Ksh1 billion, is a very significant milestone. This adjustment also reflects an acknowledgement of the evolving capacity of local firms and their readiness to undertake larger projects that are of benefit to this Republic. Therefore, by aligning procurement laws with economic realities, we are going to empower local contractors to scale up their operations, create jobs and contribute meaningfully to national development. The Bill also seeks to ensure that public procurement becomes a tool for inclusive growth. The introduction of penalties for individuals who fraudulently register companies on behalf of foreigners is a bold step towards eliminating anti-competitive practices. Monopolies and unfair competition undermine the principles of market economics, as articulated by Adam Smith, if you are a student of economics like myself, in the book Wealth of Nations . This Bill therefore seeks to promote healthy competition for the benefit of all stakeholders. What we have seen is that international companies come to Kenya and register as local contractors. Chinese contractors will come, pick ID cards of some young people, register as local contractors and get to benefit from contracts that should be given to the young people. There are cases where matters have been taken to court and the directors of the companies have no knowledge whatsoever about the running of the companies. This means it is somebody else using their identity to take advantage of the procurement process and benefit. This Bill will prohibit that. This Bill also provides for technology advancement and skills transfer. Clauses 4 and 20 emphasise technology and skills transfer, which is forward-looking. By leveraging foreign contracts to build local capacity, we will ensure that Kenya reaps both immediate and long- term benefits from international collaborations. This policy will align with the principles of endogenous growth theory, which underscores the role of innovation and knowledge in driving sustainable development. In conclusion, this Bill is more than an amendment. It is a statement of intent. It aligns our procurement laws with evolving economies, technological and governance needs, ensuring that public procurement supports our national development goals. By fostering transparency, building local capacity and addressing inefficiencies, we will position Kenya as a model of economic resilience and inclusivity. Hon. Temporary Speaker, I thank members of the Departmental Committee of Finance and National Planning. This is a Private Member’s Bill. I have been working on it for a few years now, since the last Parliament. I was able to convince the Committee to adopt it as a"
}