Government proposes tougher conditions for foreign firms

A new amendment Bill before Kenya's Parliament seeks to impose tougher regulations against foreign firms seeking to conduct business in the country. The Kenyan Wall Street reports that the Bill seeks to amend the Public Procurement & Asset Disposal Act. Among the proposals are a Ksh5m (about $38 000) fine or imprisonment for foreigners who register a company by misrepresenting themselves as being Kenyan. The National Assembly is also seeking to block Kenyans from registering a company on behalf of a foreigner. The proposed amendments further seek to block foreign companies from accessing tenders of less than KSh1bn, which will only be awarded to local firms. Only foreign firms in joint ventures with local firms will be eligible for procurement of contracts of more than Ksh1bn. The Bill also seeks to make it difficult for firms or individuals blocked from conducting businesses in other territories to open shop in Kenya. It says a person or a firm debarred by a global agency shall be deemed to have been debarred in Kenya as if the debarment procedure and proceedings were conducted in Kenya, ‘for a specified period of time not exceeding 10 years.’ ‘A successful tenderer who is a citizen contractor, shall not subcontract a foreign company unless the knowledge, skill, good or service is not available in the country,’ the Bill adds. The Bill – which was received by the National Assembly’s Director of Legal Services on 6 November – also has some requirements on how the foreign tenderers should source supplies. It orders that at least 40% of all goods and services by procuring entities should be obtained from local sources, with a Cabinet Secretary ensuring compliance quarterly.