National Construction Authority protects local building companies

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The government through National Construction Authority(NCA) has moved to protect the local construction business by insisting that foreign contractors get domestic partners when bidding for construction tenders.

NCA executive director Daniel Manduku told private and public procuring agencies to forthwith stop awarding tenders to independent foreign contractors, terming it a breach of the law.

To safeguard local jobs and businesses in the sector, Mr Manduku said, in a notice dated May 2 that only registered foreign contractors will be considered once the NCA is certain they have at least a 30 per cent local shareholding.

“Foreign contractors have to provide an undertaking in writing that they shall subcontract or enter into a joint venture with a local person or firm for not less than 30 per cent of the contract value before applying for a temporary licence from the NCA.

He said the laws also require foreign contractors to facilitate technology transfer for skills not available locally to a firm or person under NCA’s supervision.

China State Construction Engineering Corporation is the latest entrant into the Kenyan market after it was awarded a Sh20 billion contract to put up Kenya’s tallest twin building, the 67-storey Hass Towers which will also house global hotel brand Hilton’s five star facility.

The National Construction Authority (NCA) promotes and stimulates the development of the construction industry to enable it to meet development aspirations of Kenya and to facilitate its competitiveness in the region through the exportation of construction services.

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