Friday, May 8, 2015

Foreign firms told to cede 30 pc stake of contract value

Xinhua | NATION Chinese employees of China Wuyi Company Limited working on the Thika Road superhighway show local workers how to fix steel bars at a construction site. For Africa to manage increased investment from China and India, the continent must ensure relations with these countries meet its long-term economic objectives.
Chinese workers oversee construction of the Nairobi-Thika highway. Foreign construction companies are expected to include 30 per cent local ownership or sub-contract 30 per cent of the project works to Kenyan firms to qualify for registration. FILE 
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Foreign construction companies are expected to include 30 per cent local ownership or sub-contract 30 per cent of the project works to Kenyan firms to qualify for registration.
The companies have been given up to May 28 to register with the National Construction Authority in order to get jobs in Kenya. The firms must also transfer skills to local contractors in order to qualify for registration.
An advertisement to this effect was signed yesterday by the executive director registrar of contractors, Mr Daniel Manduku.
The recommendations came out of consultative meeting held in October at Boma hotel, which involved construction firms and representatives of foreign companies.
The companies are required to submit a schedule of projects they are executing with the details of costs and completion dates.
AFFIDAVIT
They are also required to lodge an affidavit with the authority besides providing proposals on the 30 per cent sub-contracting or joint venture in addition to a viable proposals for technical skills transfer.
The authority has also said that all firms should pay 0.5 per cent levy on the value of projects they are undertaking. They should also be registered by National Construction Authority to operate.
The authority said there were some contractors, who were starting work without paying the levy and warned that action would be taken against them.
They also warned that there were conmen, who were purporting to be officials of the authority going round on construction sites, seeking bribes.
The contractors have been asked to be alert and report them for action to be taken.

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