The government is moving to tighten the vetting of construction companies seeking government contracts after capacity gaps among some firms contributed to delays in the delivery of affordable housing projects.
The State Department for Housing and Urban Development says it is reviewing its systems to ensure contractors awarded public projects have the financial and technical capacity to mobilise resources and deliver within agreed timelines.
Principal Secretary Charles Hinga told the Committee on Housing, Urban Planning and Public Works that some contractors had won tenders but subsequently struggled to raise the resources required to commence work.
The state is now seeking to prevent firms that lack adequate capacity from securing major public construction contracts, a move that could raise the bar for companies seeking opportunities under the Affordable Housing Programme and other state-funded projects.
“What we are looking at is something that is unprecedented in the market. the scale of the affordable housing programme had exposed weaknesses in the capacity of local contractors, as well as gaps in project management and procurement systems,” Hinga told the committee.
The PS said the government had encountered cases where contractors were awarded projects but lacked the financial or technical capability to mobilise and begin construction.
He said the government was tightening its systems to ensure unqualified contractors do not access public projects and to deal with firms that fail to deliver after winning tenders.
The move could significantly affect construction companies as the government seeks to match the size of contracts with the capacity of firms capable of executing them.
The State Department also attributed delays in some affordable housing projects to procurement challenges, contractor capacity and the transition to the electronic government procurement system.
Hinga said the government had engaged the National Treasury to address challenges affecting the evaluation and award of tenders through the new electronic procurement system.
The government, however, maintained that the delays did not affect the entire affordable housing programme, with Hinga saying the majority of projects were progressing while corrective measures were being implemented on those facing difficulties.
“We don't want to say that there is no problem. There are challenges, and we are walking around them,” he said.
The Parliamentary committee has demanded a detailed assessment of stalled projects, including the specific challenges affecting each site and measures being taken to resume construction.
Sirisia member of parliament John Waluke called for a comprehensive status report on the stalled projects to establish the circumstances behind the delays and the measures being taken to revive them.
The lawmakers called for stronger monitoring and evaluation of housing projects to ensure contractors meet approved standards and construction timelines.
The scrutiny comes as the government seeks to deliver large-scale affordable housing developments, creating a significant pipeline of work for contractors, suppliers, financial institutions and other players in the construction industry.
The committee also raised concerns over the management of completed housing projects and called for greater involvement of beneficiaries in decisions affecting their estates.
Nairobi Women representative Esther Passaris said residents should participate in the handover and management of completed housing projects in Nairobi, arguing that community involvement would encourage ownership and help maintain the estates.
Land ownership is also emerging as a key issue for beneficiaries. Hinga asked MPs to support efforts to facilitate the acquisition of land titles through the Ministry of Lands, saying secure tenure would be critical to the success of housing and urban development programmes.
Nyaribari Masaba MP Daniel Manduku called for greater clarity on the titling process and how land attached to housing projects would ultimately be secured for beneficiaries.
