KAM CEOs Brief | 14 October 2016

Trade PS, Dr. Chris Kiptoo Engages Suppliers, Retailers and Manufacturers

State Department of Trade Principal Secretary, Dr. Chris Kiptoo has today formed a task-force for promotion of good business practice between suppliers, retailers and manufacturers.

The aim of the taskforce is to address concerns raised by suppliers, retailers and manufacturers on crucial matters such as late payments, building synergies that facilitate ease of trade and developing a shared vision for all stakeholders.

Speaking at the meeting, Dr. Kiptoo stated that the taskforce provides a platform for developing a framework by which late payment culture in Kenya among other issues will be addressed. “Late payments have been a huge problem between retailers and suppliers. Development of shared vision and guiding principles of good practices will play a key role in solving such issues,” said Dr. Kiptoo.

KAM Chair, Ms. Flora Mutahi noted that taskforce will guide the team in mitigating the challenges facing suppliers and retailers. “As KAM, our fears are based on the structural weaknesses existing in the Kenyan wholesale and retail sector which affect our efficiencies to make payments. This taskforce can address these issues through clear policy and guidelines,” added Ms. Mutahi.

The taskforce is composed of Kenya Association of Manufacturers (KAM), Retailers Association of Kenya (RETRAK), Association of Kenya Suppliers among others.

Kenyan – German Water Week held

KAM participated in the Kenyan – German Water & Waste Water Week that took place from 10 – 14 October 2016 in Nairobi.

Experts of German technology solutions, e.g. subject matter experts, industry professionals and company representatives presented their knowledge in the water and wastewater sector and get the opportunity to position themselves as future partners.

The Kenyan-German Water Week 2016 is part of the Export Initiative Environmental Technologies of the German Federal Ministry of Environment, Nature Conservation, Building and Nuclear Safety (BMUB). Medium-term to long-term objective is to form a strategic partnership between Kenya and Germany in the water and wastewater sector and to develop a roadmap thereof.

Human Resource Management Training for Manufacturing Held

KAM held a 2-day Human Resource Management Training, the Sixth Module of capacity building under Business Growth Program that targets to address key constraints that affect the exponential growth of SMEs in manufacturing.

The training aimed at providing participants with strategic tools for building strong and focused workforce, framework for developing leadership from within and motivating them to achieve their objectives, an understanding of strategic retention, compliance with statutory requirements in all aspects HRM and Provide participants with the framework for inculcating safe workplace culture.

5th meeting of the Tripartite (COMESA, EAC, and SADC) Technical Working Group (TWG) on Rules of Origin (RoO)

KAM participated in the Tripartite Task Force (TTF) on 26 – 29 September 2016. The main objective of this meeting was to continue working on outstanding work on coming up with common/agreed Tripartite Free Trade Area (TFTA) product specific Rules of Origin as well as revisit pending work from the Tripartite FTA legal text on Rules of Origin (Annex IV).

Member/Partner States should provide comments on the Tripartite Taskforce paper on the proposals for products of Chapter 20 and in addition provide national data on production and consumption of these products by 30 November 2016. Egypt submitted a proposal on Chapter 71 which Member/Partner States agreed to consult on.

Kenya-South Africa Business Forum Held

Kenya – South Africa Business Forum was held on 11 October 2016 in Nairobi during a state visit by the President of South Africa, H.E. Jacob Gedleyihlekisa Zuma.The Business forum involved presentations on investment opportunities in Kenya and South Africa followed by a B2B networking session between Kenyan manufacturers and South African manufacturers.

The sectors of focus during the business forum were;

• Advanced manufacturing: Agro processing; automotive; and capital equipment.
• Mineral Beneficiation: Construction; Power; Oil and Gas; Mining.
• Services: Hospitality; ICT and Finance.
• Pharmaceutical/Health.

Between 2006 and 2015, Kenya exports to South Africa has increased from about $.24.2 million to $.43.4 million. On the other hand, South Africa exports to Kenya increased from $.339.3 million to $.613.1 million between 2006 and 2015. On average between 2006 and 2015, trade between Kenya and South Africa has increased from $.33.5 million to $.541.7 million. Over the period, the trade deficit has expanded from $.315.2 million to $.569.7 million in favour of South Africa. The Kenyan Business Community would like to see the two Countries trade more in a balanced way by addressing both tariff and non-tariff barriers that hamper balanced trade performance. New sources of economic growth in Kenya & SA must be enhanced, with emphasis on the agri-business, services, automotives, capital equipment, infrastructure, energy and information technology sectors. For the bilateral trade to be fruitful the two countries ought to be opponent free about trade and not take protectionist stands.