Kenyan vs Foreign contractors
They
have been shamed and shunned, are our Kenyan contractors really the worst or
have we been lead to a well-orchestrated script? The first question one needs
to ask is how come foreign contractors only seem to be on all externally
financed GoK secured projects? Take an example of a Chinese contractor working
on a China Exim bank financed project. The local contracting firm, usually a GoK department prepares the payment certificates and forwards them to the parent
ministry for processing, the ministry thereafter forwards the same to treasury
which then prompts the China Exim Bank to make a credit of into the Chinese
contractors account. The funds for the project are made available and the foreign contractor
is assured of pay upon achieving project milestones.
On
the contrary, a small Kenyan contractor awarded to work on a county murram road is not
assured of payment for work done. It is even worse if there is change of guard at the county government
as the contractor is subjected to questionable extra audit to prove they are
owed by the county governments. Delays in meeting construction deadlines by
local contractors can be easily to delayed payments by the contracting government
agency.
Foreign
contractors are mostly allowed to import construction equipment duty free
where as their local counterparts are expected to have acquired the same
machinery with full application of The East African Community Customs Management Act, 2004. The duty exempt narrows the margins for the local
contractor.
How
do we make the system favorable for the local contractor?
- Make a requirement for every project to have an independent consultant to supervise all projects alongside contracting government agency.
- Establish an infrastructure bank/ department where treasury deposits monies for all infrastructure projects from the different government agencies. A payment certificate prepared by the contracting government agency and certified by the independent consultant should receive immediate payment upon presentation to the infrastructural bank.
- Stop the duty free exemptions for international contractors to provide a level playing ground for all within the industry.
What is your opinion on this?
Give us your input on the comment box below or email us your
response on southriftiekbranch@gmail.com
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