Africa-Press – Kenya. The government has pledged to address concerns raised by manufacturers over taxation and other regulatory pressures that now threaten to drive up the prices of goods and services.
This follows concerns raised by the Kenya Association of Manufacturers (KAM) at a meeting on Wednesday, March 18, over the implementation of Extended Producer Responsibility (EPR) regulations.
Manufacturers raised concerns over confusion in the EPR rules, including a Ksh150 per-item fee on non-hazardous packagings payable to the National Environmental Management Authority (NEMA).
They warned that the introduction of the fee resulted in potential double taxation and higher operational costs, especially for companies and other businesses that rely on imports.
“Many manufacturers rely on imports, and the fee could increase the cost of doing business, potentially leading to higher production costs, reduced profitability, and a heavier financial burden on businesses,” KAM argued.
KAM cautioned that additional taxation by the government risked reducing profitability among businesses, discouraging investment, and ultimately increasing the prices of goods.
To address the issues, manufacturers called for a review of the Ksh150 charge and the introduction of favourable policies, particularly for businesses that import their products directly through the port of Mombasa.
In response, the Ministry of Trade vowed to address the concerns raised by the manufacturers, including conducting broader stakeholder engagement.
State Department for Industry official, Erastus Gatebe, said the government will work closely with the Kenya Revenue Authority (KRA) and the Kenya Ports Authority (KPA) to eliminate regulatory gaps affecting businesses.
Gatebe further noted that the Ministry would also engage with NEMA and officers from the Kenya Trade Network Agency to review the Ksh150 fee on imported packaging items.
As a way forward, manufacturers were asked to submit detailed proposals and share them with the Ministry of Trade to inform policy decisions.
The latest update comes even as several companies threaten to exit the Kenyan market over increasing operational expenses due to the government’s stringent tax system.
