Youths set to gain in Uhuru’s public tenders promise

President Uhuru Kenyatta with UN Habitat executive director Joan Clos after addressing the 24th Governing Council at the UN offices in Gigiri, Nairobi, on Monday. Photo/Stephen Mudiari

What you need to know:

  • President Kenyatta said the procurement rules would be amended to allow 30 per cent of contracts to be given to the youth.
  • A new law on private sector participation in public projects came into force in February paving the way for structured joint ventures with the private sector

President Uhuru Kenyatta has promised to increase the proportion of public contracts reserved for the youth to help spur job and wealth creation.

He said the procurement rules would be amended to allow 30 per cent of contracts to be given to the youth without competition from established firms.

“We will build on this by developing public private partnerships that partner young men and women and local authorities in the provision of basic services such as clean water and sanitation, roads maintenance, energy and waste management,” the President said.

He was speaking on Monday in Nairobi when he opened the 24th session of the governing council of the UN-Habitat.

The pledge by President Kenyatta is far much bolder than his predecessor Mwai Kibaki’s 10 per cent.

A new law on private sector participation in public projects came into force in February paving the way for structured joint ventures with the private sector. This could create room for special groups such as the youth to partner with State agencies in an array of projects.

President Kenyatta said that the government would also seek to expand entrepreneurship opportunities through provision of affordable loans as well as training that makes the youth competitive in modern urban economies.

“To this end, we will launch Biashara Kenya to provide young men and women with access to financing for entrepreneurial ventures,” he said, adding that the government was targeting a seven to 10 per cent economic growth rate within the next two years.

The growth, he said, would be leveraged on enterprise to create at least one million new jobs for youth.

“We will focus on substantively improving the environment for growth in manufacturing, and agricultural production through equitable access to land,” Mr Kenyatta said.

He said his government would also strive to address the challenges of urbanisation such as huge inflow people into cities and towns in search of jobs and opportunities.

This rural-urban migration has led to crises such as poor sanitation and inadequate housing. About a third of Kenya’s population now lives in towns. Most of those migrating to cities are under the age of 25 and are expected to form 60 per cent of urban residents in 20 years.

President Kenyatta said the government has approved incentives for private developers to provide housing, especially for low-income earners.

A special focus of the incentives is expected to be on the Kenya Slum Upgrading Programme that is aimed at improving living conditions for 5.4 million people in the slums and informal settlements.

Mr Kenyatta said the government would extend security of tenure to inhabitants of informal settlements to enable them leverage their land commercially.

“By giving tenure to the people living in Kibera, my government will enable them to commercialise their land,” Mr Kenyatta said. Kibera sits on 630 acres of land with a market value of Sh63 billion.

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