How imported eggs will ruin Big 4 agenda
SEE ALSO :Uhuru's tax gamble that enraged KenyansIf we are to realize our development goals, we must stop being a consumer nation; we must produce. There is an urgent need for public entities to be deliberate about promoting local content beyond public declaration. Local content One way to do this is to develop a local content policy framework and a criteria to determine what is actually classified as locally manufactured or produced- as well as the methods through which this will be determined. Critically, the scope of the above should consider, for instance, how much value addition should go into such a product? What policies should inform development of local content and what local value threshold should we adopt? The local content policy framework would address this and effectuate the Public Procurement Disposable Act which provides for 40% local preference. The undisputed effect of a progressive local content policy is that it will stimulate use of local factors of production such as labour, capital, supply of goods and services, as well as create value in the domestic economy. This will, in turn, attract foreign investments stimulating employment creation, which is desperately needed in our country.
SEE ALSO :Investors get nod for SGR extensionUnfair competition Other challenges on local procurement include, unfair competition from cheap imports, illicit trade and counterfeits, lack of information on tender opportunities, high bid bond on government tenders and a general misconception on the quality of locally produced goods. Kenya needs to curb the current import Bill of over Sh1.2 billion and increase the export value from Sh600 billion to Sh1.8 billion in the next three years in order to expand the industrial sector and stabilise the economy. This is not possible if we do not immediately reverse the current importing trend. To do this, local content policy development and effective implementation of the Public Procurement and Disposal Act will need to be fast-tracked. Ms Mutahi is the Chairlady of Kenya Association of Manufacturers and can be reached on [email protected]