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New regulations to boost economy

CS Adan MohammedIndustry, Investment and Trade Cabinet Secretary Adan Mohamed has assured manufacturers that he will expedite the finalization of the draft “Buy Kenyan Build Kenya” Policy into law.

“Implementing the new law will lead to job creation, and consequently better  wages for the employees and support Kenya’s quest to have a robust, diversified, and competitive manufacturing sector”, he observed.

The CS was addressing a Ministerial Stakeholders Forum led by the Kenya Private Sector Alliance held at the Ministry of Industrialization attended by the two Principal Secretaries for Industrialization and Cooperatives.

Among issues in the meeting’s agenda included Building and strengthening the growth of local Industry; Tackling Illicit trade; and the adoption of a favorable taxation and regulatory regime for industrial growth. The manufacturers were led by the Chairperson KEPSA Phylis Wakiaga.

The manufacturers complained that increased Government procurement of foreign contractors was excluding their members from Government projects while these companies excluded local contractors from providing them with services or materials that were locally available.

Industrialization PS Julius Korir assured them that Government would ensure proper enforcement of the local content requirements and that the new Procurement Regulations would ensure local contractors compete effectively against foreign companies and capture the growing local opportunities.

“We are working towards reducing unemployment amongst our youth as this can jeopardize all the gains we have made so far in the growth of the economy “, he pointed out

On illicit trade,

​Ms. ​

Wakiaga appreciated the increased inter-agency collaboration between the Kenya Revenue Authority, the Anti Counterfeits Agency and the Kenya Bureau of Standards saying this would positively impact on domestic trade. 

PS Korir pointed out that there are

​also ​

substantial amounts of counterfeits produced within the country and called upon members of the Alliance to share intelligence on local manufacturers who were producing counterfeits that were hurting the economy and endangering lives. 

The manufacturers called for the abolition of the 1.5percent railway development levy on raw material imports to encourage the growth of local industries saying this would lead to higher income taxes to Government from increased profits.

The CS regretted that delays in VAT tax refunds was affecting manufactures of export products and called on

​them

 to provide the Ministry with workable recommendations on procedures that would reverse the delays for onward transmission to the Treasury. 

​Ends.​

 

 

 

 

 

 


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