End of Year Statement

Complements of the season to you all.

We have come to the end of yet another year. This has been a difficult year for the manufacturing sector. At the beginning of the year, we experienced severe drought, and dealt with unusually high inflation rates mid-year. We also had to try and stay afloat for the most part, as it was an election year and business had substantially slowed down.
As industry, we experienced a drop in our share of GDP to 9.2% as a result of issues such as double taxation, delayed payments, multiple levies and fees brought on by devolution and recently, the plastic bag ban, among others. These affected the overall competitiveness of the sector in the region.

The Doing Business Report 2018 released last month revealed that Kenya moved up 12 slots from position 92 in 2016 to position 80 in 2017, in ease of doing business. This is a strong message to both local and global investors that we are ready to move our economy to the next level.

That said, we launched the Manufacturing Priority Agenda (MPA) 2017 in the first quarter of the year under the theme “Driving industrial transformation for job creation and inclusive economic growth”. The guide was anchored on five pillars, namely: Policy, Legal and Regulatory Reforms, Level playing field for manufacturing in Kenya, Competitive Local Manufacturing Sector, Make Kenya a manufacturing hub for Exports and Securing the future of Industry.

To supplement the MPA, we launched the 10 Point Policy Agenda that outlines the gaps that need to be filled in order for local industries to thrive. The agenda aims to centralize the economic agenda of this country in current and future political narratives by doubling jobs, doubling exports, increasing foreign exchange earnings and raising manufacturing share of GDP to 15 per cent by 2020.

It is encouraging to note that the government has picked up on our key advocacy issues driven through out the years and more recently, our engagement with political engagements on the 10 Point Priority Agenda. The President has notably placed manufacturing at the focal point of his second term. This is a great opportunity for all of us to join hands in championing the industrialisation vision.

The Manufacturing sector plays a critical role in the realization of Vision 2030, and seeks to grow its GDP to 15%. In order to achieve this vision, KAM is at the front line of championing for inclusive and broad-based economic growth and promoting industrialization. The sector is an important component of the local economy, creating productive employment and opportunities for wealth generation with direct linkages to all sectors of the economy.

Our partnerships with both National and County Governments on a wide range of policy and administrative issues that affect the cost of doing business has seen us gain some major wins including a law passed on trade remedies to address dumping and the EAC Elimination of NTB Act was passed. The 2nd Annual Kenya Manufacturing Expo, held from 23rd to 25th November 2017, under the theme “Driving Local Competitiveness to make Kenya a Manufacturing hub for Africa,” also provided a forum for the manufacturers to showcase their high quality, locally made products.

I am in deed grateful to all our partners and especially the Judiciary, Anti-counterfeit Agency (ACA), Kenya Bureau of Standards (KEBS), Kenya Revenue Authority and National Environment Management Agency (NEMA) among other regulatory bodies for their assistance and commitment to our goal and dedication that led to some of the major achievements this year.

Other partners including the Government of Kenya, DANIDA, TMEA, Business Advocacy Fund, DFID, GIZ and many more have stepped in to support the secretariat to see it that we deliver quality services to you and to strengthen our capacity to play a nation-wide role.

My sincere gratitude for the guidance and support of our committed Board of Directors, Sector and Chapter leadership who all serve very selflessly on a voluntary basis to guide the secretariat in delivering on the mandate of the Association. We truly appreciate them.

I would like to thank our Members for their continued support and their confidence in the Association. It is through your feedback and participation that we have been able to advocate for a conducive business environment.

It has also been my pleasure this year to work with a very supportive, motivated and dedicated team at the Secretariat. I take this opportunity to thank each team player for their effort in delivering exceptional results.

Thank you so much for your support, friendship and partnership with KAM.

This year, we achieved a lot on our advocacy work through your partnership. Click here for the report.

KAM offices will remain closed from Friday, December 15, 2017 and re-opens on Wednesday, January 3, 2018.

We will however remain open for processing of Visas for Export both in Nairobi and Mombasa.

For any queries contact us on the Members Helpdesk email: membershelpdesk@kam.co.ke.

We remain committed to your success, and to the prosperity of our industry.

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