The Kenyan government will purchase Sh3billion worth of doors and windows from the informal sector as part of the affordable housing project.
Infrastructure ministry says it will place the orders to produce 100,000 doors and 120,000 windows from local providers.
The ministry has asked players in the informal sector commonly known as Jua Kali to work within their associations and corporatize so that they can access opportunities as project suppliers to produce doors and windows for Nairobi’s Starehe and Shauri Moyo estates.
Housing Principal Secretary Charles Hinga said that the Ministry has ring-fenced some components used in construction of homes to ensure that the Jua Kali sector can supply inputs to the Program.
“The Jua Kali Sector is a big contributor to employment in the country and a key enabler of the manufacturing sector. We are keen to up-skill them to enable them to contribute to this national development project while supporting their growth,” Mr Hinga said.
The ministry is now encouraging players in the informal sector to form associations and register to provide construction components and materials for the Affordable Housing Programme.
“We have ring-fenced 69 items which must be supplied by our Jua Kali sector,” he said adding that to enable funding, a Multi-Agency Committee led by National Construction Authority (NCA) will provide the players with 30 percent advance payment upon the successful bidding process.
Industrialisation PS Francis Owino said on his part the informal sector is critical to achieving the Big 4 Agenda, especially the manufacturing sector.
“The informal sector has the greatest potential to enable the realization of the Big 4 Agenda and economic growth as they are critical players in the production of construction sector materials and components, and are a key contributor in employment creation,” Owino said.
They spoke after launching the Jua Kali Production Manual for the components of the Affordable Housing Programme that will provide stakeholders with knowledge on the standards required to design and manufacture components for affordable housing projects. By standardising the design and production of these items it will be possible to utilize Jua Kali manufacturers across the country and in this way provide them with new income generation opportunities.
The Jua Kali Association National Chairman Richard Muteti said that the sector must organize itself in order to deal with the Government – one of the largest markets they could serve. He challenged the Jua Kali Association members across the country to form groups, as it is easier for the Government to transact with Associations rather than a multitude of individual Jua Kali entrepreneurs.
Earlier in the year, the State Department for Housing and Urban Development contracted three Nairobi based Jua Kali associations (Ngokamka Juakali Group) in the pilot phase of developing an integration model for MSMEs.
The group won a contract to supply 8,400 windows and 7,000 doors for the first flagship project under the programme at Park Road.
About 228 units were recently completed in the first phase of the Park Road project and the units have utilised doors from the Ngokamka Group.