Manufacturers are pushing for the removal of import duty on raw materials in a bid to lower production costs and increase competitiveness of locally-made goods.
The Kenya Association of Manufacturers (KAM) CEO Phyllis Wakiaga said the government should tax the final product and harmonise taxes to avoid double taxes by national and county governments.
“Going into an electioneering period, all political aspirants need to be deliberate in developing long-term economic plans that seek to spur growth in all sectors of the economy.”
KAM said the proposal will lower production costs of local goods and improve their competitiveness in the global market.
This in-turn, would boost job creation and contribution of the sector to the gross domestic product (GDP).
“This calls for creation of favorable economic policies that attract investments, and elimination of barriers to trade such as multiple fees and levies”.
Imported raw materials and semi-processed goods attract a duty of ten percent which KAM says has been a major contributor to the high prices of locally-made goods, making them less competitive in the global market.
KAM also wants the next administration to establish a manufacturing delivery system to enable timely tracking of progress, considering that the sector is a major plank in Kenya’s job development drive.
According to data from Kenya’s National Bureau of Statistics, the sector’s contribution to GDP fell to 7.6 percent in 2020 from 7.9 percent in 2019.
