Government to spend KES 3billion to boost Jua Kali sector

The Government of Kenya through the State Department for Housing and Urban Development (SDHUD) is set to place a KES 3billion procurement order with the informal sector to produce 100,000 doors and 120,000 windows as local content providers for the Affordable Housing Programme.

As part of the government’s plan to create economic opportunities in the country, the Ministry of Transport, Infrastructure, Housing, Urban Development, and Public Works has urged the informal sector players commonly known as the Jua Kali sector to work within their associations and corporatize so that they can access opportunities as project suppliers to produce doors and windows worth for the Affordable Housing Programme (AHP) projects in Nairobi’s Starehe and Shauri Moyo estates.

Speaking during the opening of the Micro, Small and Medium Enterprises Jua Kali Sensitization Programme and launch of the Jua Kali Production Manual, the State Department of Housing Principal Secretary Mr. Charles Hinga said that the Ministry has ring-fenced some components used in the construction of homes to ensure that the Jua Kali sector can supply inputs to the Program.

“We are giving the Jua Kali sector an opportunity to participate in the construction of houses for the Affordable Housing Programme,” Mr. Hinga said. “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 upskill them to enable them to contribute to this national development project while supporting their growth.”

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.

“Our people know how to make doors and windows, we are giving them access to the market to enable them to build their country and to also create employment. We have ringfenced 69 items which must be supplied by our Jua Kali sector. 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,” Mr. Hinga highlighted.

The Ministry in partnership with the State Department for Industrialization, State Department of Cooperatives, National Construction Authority (NCA), Kenya Bureau of Standards (KEBS), The National Industrial Training Authority (NITA), State Department of Vocational and Technical Training (TVET), Kenya National Trading Corporation (KNTC), Kenya Industrial Estates (KIE) and other agencies will form a network that will facilitate the Jua Kali to manufacture and supply these ringfenced items for affordable housing projects across the nation.

The Principal Secretary, State Department for Industrialization, Dr. Francis Owino, highlighted that 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,” Dr. Owino said.

The purpose of the MSME Jua Kali Production Manual for the components of the Affordable Housing Programme is to provide stakeholders with knowledge on the standards required to design and manufacture components for affordable housing projects. By standardizing 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 Production Manual provides guidance on the AHP standards and aspirations on the quality of the components to be produced by the Jua Kali sector. It is part of our joint efforts to upskill the players and improve the quality of their products through recognized quality assurance methods,” NCA Executive Director Eng. Maurice Akech said.

On his part, the Jua Kali Association National Chairman, Richard Muteti, said that the Jua Kali 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 successfully won a contract to supply 8,400 windows and 7,000 doors for the first flagship project under the Affordable Housing Programme at Park Road. 228 units were recently completed in the first phase of the Park Road project and the units have utilized doors from the Ngokamka Group.