China's firm to buy steel from Kenyan manufacturers

CRBC will evaluate the tenderer's business, service ability, quality proof and price stated in the bidding document. Eventually, one or several suppliers will be awarded the tender, said Zhang.

The companies that presented their bids are 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.

Senior officials from the steel manufacturers have also allayed fears of shortage or spikes in the prices of steel during the SGR project construction phase.

They noted that the industry has in the past supplied steel to other mega projects in the country and East African region while at the same time servicing other local industries.

The 5,000 tons of steel is expected to meet demand for steel for a period of about three months. CRBC expects to undertake another round of procurement for steel towards end of this year.

Zhang added that the firm was keen on buying most of the materials used in the SGR project locally. Sourcing within Kenya has the benefits of availing materials to the contractor in a fast and efficient manner and at the same time contributing towards the growth of local Kenyan businesses.

"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," Zhang said.