Manufacturers Cite Priority Areas for Government Intervention

KAM’s Priority Agenda to Catalyse Implementation of the Industrial Transformation Programme

Kenya Association of Manufacturers has today launched this year’s Manufacturing Priority Agenda (MPA) 2016 under the theme ‘Promoting Industry for Shared Prosperity”.

The MPA is a concise guide on the most burdensome challenges facing Industry that is informed by the Association’s conviction that Manufacturing is critical to the social, political and economic transformation of our country.

The Priority Agenda is developed every year from member’s observations of emerging public policy, a review of the current business environment and relevant regulations and captures issues affecting trade and the industry’s perspective on the dynamic context in which manufacturers operate. Key among the issues highlighted this year were challenges that hinder the existence of a competitive business environment for local businesses, such as double taxation and slow VAT refunds.

During his keynote address, Cabinet Secretary, Ministry of Industry, Investment and Trade, Adan Mohammed, commended industry’s support of the industrialization blueprint launched last year. “It is commendable that our visions of prosperity for this country are aligned, and I am pleased to see the recommendations made in the MPA merge with the government’s plan to industrialize. We look forward to collaborating with KAM and other industry players to realize our goals of transforming Kenya into a middle income country by the year 2030.”

Speaking during the launch, KAM ChairLady, Ms. Flora Mutahi stated that KAM will continue to work with the government and other stakeholders towards the development of our country’s industrial sector. “This Priority Agenda is our contribution in shaping policies and regulatory frameworks that enable local businesses and trade partnerships thrive. As we head into the next elections it is our duty as industry to ensure that government pursues a pro-growth and pro-business agenda.”

The priority areas will be driven under five key pillars which, if strengthened, will lead to a more competitive environment and impactful economic gains for Kenya’s industrial sector. These are:

Pillar One: General Policy Framework

• Complete devolution framework
• Macroeconomic predictability
• Regulatory environment that supports long-term investment

Pillar Two: Ensure a Level Playing Field

• Curtail black economy
• Taxation that does not discourage domestic production
• Preferences for local content in public procurement
• Unfair foreign trade practice

Pillar Three: Competitive Local Manufacturing

• Reduction of cost of doing business in Kenya

Pillar Four: Make Kenya a Manufacturing Hub for Exports

• Promote export competitiveness
• Access to EAC markets

Pillar Five: Securing the future of Industry

• Availability of skilled Labour
• Innovation and technical upgrade
• Support SMEs

KAM Chief Executive, Ms. Phyllis Wakiaga stated the MPA provides a platform for the manufacturing sector to rightfully engage Government towards the realization of industrialization in Kenya. “The Agenda maps out the priority areas with a clear framework to engage the government and other stakeholders to find practical solutions for the industry. As KAM we look forward to working with the Government on these issues mainly because the recently launched Kenya Industrial Transformation Programme has re-energized our spirits and imagination as the business community in our quest to achieve the vision 2030 goals for the citizens of our country. The challenges and opportunities identified by KITP resonates with the KAM’s Policy and Advocacy agenda for 2016.”

In order to enhance public private partnership, KAM and the Ministry have adopted a sector coordination approach in harnessing opportunities and addressing challenges identified by KITP towards successful implementation of these priority flagship projects.