The standard gauge railway under construction. PHOTO | KEVIN ODIT | NATION MEDIA GROUP
Mr William Ndeti is among suppliers who won tenders worth millions to do civil works on the standard gauge railway (SGR).
His
firm Headstream Contractors Ltd, an SME, has been sub-contracted to
conduct drainage and slop protection for Sh24.9 million, Herring Bourne
skeleton protection at Sh25.5 million and stone pitching at Sh18
million.
Mr Ndeti’s firm is one of the several SMEs that bagged tenders related to the railway which is nearing completion.
“I
have had to employ other 1, 950 suppliers in all sections assigned to
me at the SGR. They supply sand, ballast and rock and 90 per cent of
them are local. They comprise women, men and youth,” said Mr Ndeti in an
interview with Money on Thursday.
The exposure of SME
to large contracts has been made easier with the introduction of the
e-procurement platforms that enhance the reach to all small businesses
in 47 counties.
Most of the SMEs are run by youth who are exposed to the Internet, increasing their chances of getting the tenders.
“Measures
on procurement currently focus on growing the SMEs which will help push
our country to an industrial middle class economy,” said
Industrialisation Cabinet Secretary Adan Mohammed at an earlier
interview.
By participating in government tenders,
SMEs are bound to expand as they benefit from bigger market in addition
to being well-placed to acquire high-end technology, skills as well as
deepen their know-how on value addition.
Transport Cabinet Secretary James Macharia told Money
that, “local businesses are expected to contribute up to 40 per cent of
all supplies (per project) as a standard set by government.”
DEDICATION AND EXPERTISE
Other
SMEs contracted by China Road and Bridge, the builders of the SGR, are
Jubilee African Ltd, Greenersol Landscape, Miangeni Hardware and
Contractors and Leaf Base Services Ltd.
The SME are
paid between Sh5 million to Sh25 million for services which range from
pitching stones at the site, protecting the drainage and slop of the
rail, planting grass, among others services.
Mr Reuben
Kihiko the CEO of Jubilee African Group said handling contracts for
major government projects need dedication and expertise. His firm has
been subcontracted to take charge of drainage and slope protection along
the standard gauge railway route.
“I was contracted
mid last year, my business has since transformed because I had to employ
200 more people and restructure the firm’s operations so that I could
meet the requirements set for contractors,” said Mr Kihiko.
China
Road and Bridge, he said trained contractors to tailor their services
to meet the SGR standards. The suppliers are hired on a long-term
contract since they will be handling the projects in future if the need
arises.
Mr Mustafa Hajj, founder of Miangeni hardware and contractors, told Money
that his team had to undergo a rigorous selection process. This
comprised proving practically the capability of his firm to handle a
major project.
Mr Hajj said firms that have embraced technology and prudent management systems are in better positions to win major contracts.
The SMEs, he added are taken through trials to demonstrate the experience and skills they state in their documents.
“Speed,
quality and accuracy also mattered in the project handling. All these
were proven through a practical exercise by China Road and Bridge,” said
Mr Hajj who supplies hardware material at the SGR offering mortar,
rubble, Herring Bourne skeleton (for slope protection) at the site.
He
had to employ 700 more people, both skilled and unskilled, to meet the
targets set by the China Road and Bridge for completion of the SGR.
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