16/10/2023: The Principal Secretary State Department for Industry, Dr Juma Mukhwana alongside KAM Chief Executive Anthony Mwangi, visited one of our members, PG Bison, to engage in insightful discussions regarding the challenges faced by the company in the course of its business operations.
PG Bison has maintained a thriving presence in Kenya for the past two decades, specializing in the creation of kitchen cabinets, bedroom wardrobes, living room furniture, and institutional furnishings.
During our discussions, we delved into the challenges not only experienced by PG Bison but also those encountered by the timber sector as a whole. Detailed conversations were conducted, addressing various issues, including the increase in duties on particleboard (PB) and MDF from 25% to 35%, the classification of Particleboard (PB) and Medium-Density Fiberboard (MDF) as category B items in the East African Community (EAC) offer under The African Continental Free Trade Area (AFCFTA) resulting in imbalanced duties across the region, the introduction of excise duty of 25% on PVC and paper products, as well as an Export Development Levy on construction raw materials. These excise taxes have significantly impacted production costs, leading to a price increase in locally manufactured furniture.
We explored potential solutions to address these challenges, recognizing the importance of collaborative efforts. KAM maintains its steadfast commitment to advocacy, working closely with the government to nurture a dynamic and competitive business landscape.