New tax on imports to promote local manufacturing, says PS

Industrialisation PS Juma Mukwana (right) with officials from Milly Glass Works Limited when he toured the company in Mombasa on Monday. [Robert Menza, Standard] The government has defended the 10 per cent levy imposed on imported goods saying it is meant to promote the growth of local industries. Industrialisation PS Juma Mukhwana said the government is focused on promoting local manufacturing. "We do not want to import products we can produce locally," Dr Mukhwana said on Monday when he visited Milly Glass Works Limited in Mombasa. "Introduction of the ten per cent import levy on several products that can be produced locally is aimed at supporting local industries," he said. He added: "The government will not stop anyone from importing products we can produce locally. However, we will put a tax to it to ensure those producing the same product locally are not disadvantaged. This is meant to encourage people to invest in local production." Mukhwana said many foreign investors, from China and India, have expressed interest in setting up industries in Kenya. Last week, the government concluded a partnership with the EU that saw Kenya given duty-free access to markets in the 27 European countries. "The EU has opened up a big market for Kenya but the problem is we don't have enough things to sell. We need to manufacture enough products locally to satisfy the huge EU market of nearly 500 million people, and we are making all efforts towards that end," said the PS. He added: "Part of the plan is for us to stop exporting raw materials. We are now encouraging value addition." Mukhwana said Kenya is also in the process of concluding a bilateral agreement with the UK before another one with the US before the end of this year, a move he said is opening up more international markets for Kenyan products. "Kenya is the leading exporter of textiles in Africa, most of which is exported to the US. We do not want just to sell textiles. We also want to sell them coffee, tea, flowers, fruits and even glass," Dr Mukhwanasaid, adding; "Africa is coming together, under the Africa Continental Free Trading Area, and what it means is that anything made in Kenya can be sold anywhere in Africa. But the biggest question in this regard is; do we have what to sell?" "We are encouraging the growth of local industries as we discourage imports. The government will not impose more taxes on those manufacturing in Kenya. We are only targeting those importing so that they help local manufacturers." Mukhwana challenged Milly Glass Works Limited to also venture into the production of pharmaceutical bottles noting that the country imports all its pharmaceutical bottles. "Every time we import a bottle, we are exporting jobs out of Kenya, and as such, the government is encouraging local investors to invest in manufacturing in Kenya," said the PS. Kenya, he said, has a big sector of flat glass used for motor vehicle windows and housing, yet none of them is produced locally, asking local manufacturers to also take up the challenge. Milly Glass vice chairman Mohamed Rashid who was among the company's officials who took the PS around said they project to increase their production by 20 per cent by 2030.

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