KAM CEO’s Brief | 11th May 2018

President Kenyatta affirms his commitment towards the Manufacturing Sector

The Presidential Round Table, held on 10th May 2018, extensively discussed efforts by both government and the private sector in achieving the key milestones and targets of the Big Four pillars of manufacturing, food security, affordable housing and universal healthcare.

President Uhuru Kenyatta emphasized the need for a multi-sectoral approach to deal with corruption as well as illicit trade and counterfeits that undermine the achievement of the Big 4 Agenda.

Speaking during the forum, KAM Chairlady, Ms. Flora Mutahi noted that the growth of the manufacturing sector is hinged on:

  • A competitive business environment
  • A stable and predictable policy environment
  • Market access of locally manufactured goods, locally and internationally
  • Fight against illicit trade, which currently takes about 40% of the  local market

Some of the proposals presented during the meeting include:

  • Energy cost to come down to 9 US cents per kWh. In addition, Time of Use tariff to be reviewed to accommodate all industries and Fixed Charge Cost stabilisation fund developed to stabilise energy prices.
  • The removal of Import Declaration Fees (IDF) and Railway Development Levy (RDL) from raw materials, industrial input and machinery, and increase them for finished goods
  • Delinking EPZ from minimum wage
  • Finalization of prompt payment legislation
  • Finalization of Regulations for Public Procurement and Disposal Act (PPDA). Local content to apply to all Ministries, Department and Agencies (MDA’s) and government infrastructural projects.
  • Finalization of Policy/Regulations for Buy Kenya Build Kenya. A mark to confirm locally manufactured products, such as the Kenya Bureau of Standards (KEBS) permit, to be included as a requirement in the regulations
  • The Council of Governors to finalize on the County own Source Policy/Bill and the Tax Processing Bill
  • The extension of the Standard Gauge Railway promotional tariff to December
  • The review of the VAT refund formulae and KAM proposals on withholding VAT
  • The review of proposals on excise on kerosene and public participation on excise duty
  • The development of industrial roads
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