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Support manufacturing sector, State told

By Lee Mwiti | Jan 21st 2016 | 1 min read
By Lee Mwiti | January 21st 2016

The Kenya Association of Manufacturers (KAM) is concerned that growth in manufacturing in the country is being stifled.

The association, led by its Chief Executive Officer Phyllis Wakiaga, held a sit-down with the Ministry of Industrialisation and Enterprise Development yesterday, and challenged Industrialisation Principal Secretary Julius Korir to look at the following areas: the need to effect the Buy Kenya Build Kenya Policy, Preferences on Local Procurement, improved competitiveness and reduction of the cost of doing business.

It further claimed that the cost of doing business is the worst impediment to growth, and results from taxes such as the IDF fees, Railway Development Levy (RDL), Excise Bill and Value Added Tax (VAT) refunds. Manufacturing representatives also highlighted the cost of energy and labour, delays in receiving payment from government resulting in cash flow issues, and the duplication of regulatory bodies as all creating additional costs.

Mr Korir said the ministry is keen on working with the Industry to resolve these issues and called for amicable engagements with manufacturing players, “The ministry is the industry’s arm in the Government, with the mandate to grow this sector. We will be keen on doing that through enhancing the ease of doing business. Every Government Project contract has a local content clause that indicates 40 per cent of inputs for the project should be sourced locally,” said Korir.

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