• MP wants contract price quoted at 15 per cent range of engineers' estimates.
• Public also wanted to comment on the bill for CBK to regulate digital lenders.
Image: AMOS KERICH
Wananchi have been invited to give their views on a Bill seeking to give locals firms more advantages in pursuit of state contracts.
The Public Procurement and Assets Disposal (Amendment) Bill, 2020 by Thika Town MP Patrick Wainaina is poised to give local contractors more clout above international bidders.
The Bill, which is before the Finance Committee chaired by Homa Bay Woman MP Gladys Wanga, seeks to compel county and national government to pay contractors within three months of supply.
It also seeks to increase the threshold for local firms to Sh1 billion from Sh500 million – a situation that has locked out many local firms from state contracts.
This has, however, been provided for in the newly published procurement regulations, albeit largely for tenders reserved for special interest groups.
Wainaina’s proposal further seeks to give preference to local contractors, even if their quote is one and a half times more than that of foreign bidders.
It also increases the amount international bidders must source locally to 60 per cent from the current 40 per cent.
The Bill also provides that in addition to the criteria to be awarded a contract, the price should be within 15 per cent range of engineers' estimate.
Parliament, in the notice calling for public views, said the intent of the amendment is to avoid situations where companies quote unrealistic low prices just to win a tender.
“It would also deter companies from quoting an unrealistically high price for a contract whose actual cost is low,” the notice reads.
Kenyans have until August 11 to write to the Clerk of the National Assembly any submissions they might have about the legislative proposal.
Public views are also being sought on a bid by Bonchari MP Oroo Oyioka for Central Bank of Kenya to regulate digital money lenders.
The lawmaker wants introduced a regime where the CBK regulates the conduct of providers of digital finance products and services.
The Bill is to seal the gap in the current law which has no provisions for a legal framework governing digital borrowing platforms.
“This will ensure there is a fair, non-discriminatory, non-exploitative digital financial product and services marketplace in access to credit,” the notice reads.
“As such, the CBK will have an obligation of ensuring fair and non-discriminatory marketplace for access to credit,” Oyioka says in his memorandum on the legislation.
CBK will, if the bill is passed, approve digital lenders' rates and other loan charges; and set ceilings for non-performing loans.
This is in a bid to cure instances where borrowers have been subjected to interest rate increment which adds to hefty amounts when compounded annually.
Kenyans have also been invited to speak on the proposed Mediation Bill, 2020 which provides for all civil disputes to be heard by a mediator.
The Bill, which is part of efforts by the government to reduce the case backlog in the courts, would see mediators appointed to hear and determined such matters.
According to the proposal, a court before which a dispute if filed or is pending may refer the matter for mediation at any time before the final judgment is read.
This would be so if the court is of the view that mediation will facilitate a resolution of the dispute or part of it.
The Mediation Bill is before the Justice and Legal Affairs Committee chaired by Kangema MP Muturi Kigano.
Edited by R.Wamochie