Kenya to start preferential local buying

NAIROBI, Friday

Kenya will start preferential buying of locally manufactured goods and services in the first quarter of 2012 in a move to support local small- and medium-scale businesses.
Finance Minister Uhuru Kenyatta said on Friday that the proposed Public Procurement and Disposal will start early next year. "These measures are meant to support our resolve to support growth of local companies to enable them to create more employment opportunities and wealth," said Kenyatta.
Kenya is seeking to achieve middle income status by 2030 and industrialization is one of the main pillars expected to drive the national plan. Kenyatta said the plan to buy locally is part of "Buy Kenya and Build Kenya" strategy aimed at encouraging the use of locally manufactured goods in private and public sectors to encourage industrialisation.
The proposed preferential buying is based on a presidential directive issued by President Mwai Kibaki last year, which required Public Procurement Oversight Authority (PPOA) to come up with the regulations allowing the preferential treatment for local goods and services. The goods, however, are limited to what the local industries can manufacture like furniture and plastic products among others.
However even before the regulations are implemented, the government has already started targeted buying of locally manufactured furniture, with the Kenya Prisons Service workshops being the main beneficiaries. (READ: Sh950m House chamber ready in March)

In addition to supplying government departments, the service has also been contracted to supply the refurbished parliament with chairs. Small business sector providing information communication services like website design and software development is another sector which is likely to benefit from the move.
The decision to buy from locals has caused excitement among the small- and medium-scale business owners because of the big opportunity that exists in government buying. "Sometimes the flow of our furniture really slows down because every season has its spending priorities, but if the government would buy from us, then we are seeing a big opportunity for expansion and creating more jobs," said Alex Waiganjo, who operates a number of wood and metal furniture workshops in residential estates in the Kenyan capital. (Xinhua)