Africa-Press – Kenya. The Manufacturing sector has recommended several policies targeting growth in the sector to be implemented by the next government.
Through the Kenya Association of Manufacturers, the players have suggested among others, ways of stabilizing Kenya’s economy, creating employment and increasing investments.
On the increase of investment opportunities in the manufacturing sector, the players want excise tax adjustments for inflation done only once in every five years.
This is to allow for organic growth and improve Kenya’s Foreign Direct Investment attractiveness.
KAM wants to be engaged in reviewing the country’s Export Development and Promotion Strategy (NEDPS) by monitoring targets including the 12-15 per cent GDP by 2027.
On regulations and taxation, manufacturers have suggested an introduction of a commission dubbed Better Regulation Commission to review and reduce regulatory burdens by 50 per cent.
KAM chairman Muchai Kunyiha said regulatory reforms should address overlaps, duplication, rates for fees and charges amongst regulatory agencies.
“Better regulations make it easier to comply to and that is key in helping us grow,” Kunyiha said during the launch attended by representatives from various political parties.
He suggested the implementation of better policies that will enable Kenyan manufacturers to enter global competitive markets.
“An established digitized One-Stop Regulatory Shop will bring together National and County agencies to help in reducing overlaps, duplications and excess fees and charges,” KAM said in its 2022-2027 manifesto.
Manufacturers also want clear taxation on raw materials and inputs that is stable and efficient.
In the latest Economy Survey by the Kenya National Bureau of Statistics, the manufacturing sector’s value of output increased by 2.8 per cent from 2.3 trillion in 2019 to 2.4 trillion in 2020.
The volume of output for the sector grew by 1.0 per cent in 2020.
The growth is mainly attributed to increased production of sugar, other non-metallic mineral products which include cement, food products not elsewhere classified (nec) which comprise tea, chemical and chemical products and pharmaceutical products.
Leather and related products, beverages, motor vehicles, trailers and semi-trailers, rubber and dairy products sub-sectors recorded declines in the review period.
Employment in the formal manufacturing sector decreased by 10.3 per cent to 316.9 thousand in 2020 mainly due to the global Covid-19 pandemic.
Total sales by Export Processing Zone (EPZ) enterprises increased by 4.3 per cent to Sh80.5 billion in 2020 while imports contracted by 7.5 per cent to S36.8 billion in 2020.
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