Kenya: SGR Contractor to Buy Sh330 Million Steel From Local Firms

Nairobi — China Road and Bridge Corporation (CRBC) is in the process of buying over 5,000 tons of steel worth more than Sh330 million (US$3.7 million) from Kenyan manufacturers for the construction of the Standard Gauge Railway (SGR).

This will be a first large scale local purchase of steel by CRBC since construction of the new railway began. The firm has previously purchased smaller consignments from different Kenyan steel makers.

“We have tested the suppliers’ steel products that are participating in this process in our SGR Project centre lab and they have met the requirements for the project,” said James Chen, CRBC business manager of department for external relation and cooperation for the SGR project.

The firm said the 5,250 tons of steel bars are expected to meet requirements for the construction of culverts and bridges foundation construction for about three months.

Five steel manufacturers on Friday presented their bids to supply the steel bars at CRBC’s offices in Nairobi.

CRBC will evaluate the quotations and select a suitable supplier based on the stability of their production capacity, good sales performance, excellent quality control and lower price variations.

The companies that presented their bids include Apex Steel Mill Corporation, Steel Makers Limited, Devki Steel Mills, Prime Steel Limited and Tononoka Steel.

The companies said the local steel industry has adequate capacity to provide steel for the construction of the new railway while at the same time continuing regular supply to other local steel intensive industries.

The steel makers expect the railway to boost the industry by driving up demand for steel products.

“This project will play a critical role in the growth of different local industries. We have been paying close attention to local procurement of materials, except for rail and locomotive, materials such as cement, steel, fuel and ballast are sourced locally,” Chen said.