NAIROBI, Kenya, Feb 26- The Cabinet is considering legislative proposals to establish a framework for the multiple awards of contracts in a harmonized price per unit in a bid to promote Micro, Small and Medium Enterprises (MSMEs).
The framework seeks to address concerns over domination by established contractors and enhance the ease of doing business and foster the participation of MSMEs in business.
The decision was part of policy realignments the Cabinet committed to during its inaugural meeting this year chaired by President Uhuru Kenyatta at State House Nairobi yesterday.
“That framework would allow for large contracts to be awarded in one-unit price to multiple parties, as opposed to the current “winner takes it all” approach,” a statement issued by State House said after Thursday’s Cabinet meeting chaired by President Uhuru Kenyatta.
Consequently, to further enhance participation of the private sector in national development, the Cabinet also considered and approved the Public-Private Partnerships Bill, 2021.
The PPP Bill is a legislative intervention to strengthen and revitalize the Public-Private Partnerships Programme through enhancing the ease of private sector participation in financing, construction, and development of projects undertaken by the government.
The objective of this Bill is to amend the Public-Private Partnership Act, 2009, to revise the composition of the Public-Private Partnership Technical Committee.
The Director of Public-Private Partnerships (PPP) Stanley Kamau earlier said the introduction of PPPs projects in Kenya’s infrastructure development is a major milestone for the government in providing services at an accelerated and affordable rate.
The Cabinet expressed optimism that the newly proposed measures will re-position the economy onto a steady and sustainable growth trajectory as part of the government’s Post-COVID-19 Economic Recovery Strategy.