Cement makers reject bid to lower tax on imports

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By John Oyuke

Eight Cement producers from Kenya and Tanzania have warned against plans to remove tax on cement imports into the East Africa Community (EAC) market.

They said zero-rating the commodity would harm the industry and warned Kenya might suffer the most as it has the heaviest investment in the industry —close to Sh75 billion. Uganda has requested for lowering of Common external Tariff (CET) on cement imports.

East Africa Business Council (EABC) Vice Chairman Kelli Kiilu and Executive Director Charles Mbogori expressed fears the industry risks collapse given the competition it was receiving from imports from various destinations.

The two officials said the region is inundated by cement fromcountries like Egypt and China with competitive edge in the costs of electricity, thermal energy and economies of scale.

Viable proposal

Kiilu and Mbogori led members of the East African Cement Producer’s Association (EACPA), who come under EABC at a meeting with Industrialisation Minister Henry Kosgey in Nairobi, yesterday.

The manufacturers also requested that the sensitive product status of cement be restored and that Government invokes additional anti-dumping duties.

Kosgey said he would immediately seek for a meeting with his counterparts in the Ministries of East Africa Community, Finance and Trade to come up with a viable proposal on the issue before the EAC Council of Ministers Meeting next month.

He said that the industry is a local resource based sector that had supported rural industrialisation.

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