Kisii County Senator Richard Onyonka.
Senators are headed for a major clash with the national government over ring-fencing of some contracts to foreign firms at the expense of local contractors.
The development comes after the lawmakers raised issues with the award of a contract, which was hurriedly canceled in unclear circumstances, to a Chinese firm for the expansion of Kiambu Road into a dual carriageway.
Raising the alarm, Kisii Senator Richard Onyonka pointed to the controversial provision that only Chinese contractors or consortia led by Chinese firms were eligible to apply for certain contracts as discriminatory.
Senator Onyonka noted that the Kenya National Highways Authority (KenHA), in its invitation for bids for the Kiambu Road expansion project, included an explicit requirement restricting eligibility to Chinese contractors or firms led by Chinese entities.
Cancelled the procurement process
The condition, he argued, raises serious concerns about the fairness, inclusivity, legality of this procurement process, particularly in view of our constitutional principles on competition, non-discrimination and value for money in public procurement.
KenHA had floated the tender and specifically invited only Chinese firms in line with the financing arrangements with the Chinese financier – China Exim Bank.
However, before the tender’s scheduled closing date of August 22, 2025, the agency cancelled the procurement process without explanation.
Senators now want to know whether Kenyan contractors or joint ventures involving Kenyan participation were considered in the development of the eligibility criteria.
Consequently, the Senate Roads, Transport and Housing committee has been tasked to investigate the rationale behind KeNHA’s decision to limit eligibility for the project to Chinese contractors only or a consortium led by Chinese firms.
The committee chaired by Migori Senator Eddy Oketch is expected to clarify whether the said requirement aligns with procurement laws in the country, including the Public Procurement and Asset Disposal Act and whether it complies with any applicable bilateral or multilateral funding agreements.
“We expect the committee to recommend measures to ensure that future infrastructure projects promote fair competition, enhance local participation and uphold transparency and accountability in procurement processes as per the Constitution of Kenyan, 2010,” said Mr Onyonka.
Marsabit Senator Mohamed Chute said such practice is not only limited to the Kiambu Road project only but is widespread across the country.
He said the problem the country faces is Chinese companies being given contracts that can be handled by local contractors, leaving the latter to suffer.
“The companies that are working in Kenya today on roads and buildings are mainly Chinese. You can find Chinese traders doing some work in markets such as Chuka, Meru and Marsabit,” said Mr Chute.
Unfair competition
Homa Bay Senator Moses Kajwang’ said there must be a deliberate ring-fencing of critical infrastructure projects that can be done by local contractors to promote local firms.
He expressed concerns over some foreign firms that do nothing to promote the local industry as they source even raw materials for local projects from their own countries.
The senator said such foreign firms even dictate what will be done as they are the ones who conduct feasibility study, do the design, provide the financing and get their own companies to implement the project.
“This is not how to build an economy. We need to build roads and railways, but the raw materials and labour must come from this country,” said Mr Kajwang’.
“It is sad that for a road project, even the insurance for the products is underwritten in foreign countries. The financing, the interest and the value derived from the projects all go abroad. We must support our local entrepreneurs and industries,” he added.
Last year, MPs approved amendments to the Public Procurement and Asset Disposal Act requiring that for larger contracts exceeding Sh1 billion, international firms will only qualify if they enter into joint ventures with Kenyan companies.
The approach, the lawmakers said, guarantees that local firms benefit through capacity building and technology transfer from their international counterparts.
This is after the legislators decried that for years, local contractors have faced unfair competition, often being sidelined in favour of foreign companies.
“This Bill is about giving Kenyan businesses a fair shot. It levels the playing field, enabling local entrepreneurs to compete effectively and thrive in their industries,” said Molo MP Kimani Kuria, the sponsor of the Bill.
The legislation also sought to have contracts below Sh1 billion exclusively awarded to local contractors to give them a lifeline.
