This archive report was first published on 25 August 2021.
On August 25, 2021, Kenya Association of Manufacturers (KAM) sounded the alarm on the economic stagnation that could befall the country if local manufacturing continues to dwindle.
According to KAM Chief Executive Phyllis Wakiaga, Kenyans are already suffering economically due to Covid-19, and the situation is likely to worsen unless urgent action is taken.
“We have emphasised time and again on the need to nurture local businesses to increase their productivity, which will in turn naturally increase government’s revenue streams,” Ms Wakiaga said at a press briefing.
However, KAM has criticised Parliament’s rejection of the Public Procurement and Asset Disposal (Amendment) (No. 3) Bill, which proposed that foreign contractors source not less than 40 per cent of supplies locally.
“This move negates efforts to achieve the ‘Made in Kenya’ goal. It contradicts with the 2015 presidential directive that requires that 40 per cent of public procurement be reserved for locally produced goods and services,” said KAM Chairman Mucai Kunyiha.
Mr Kunyiha also warned that the punitive tax regime will continue to give an upper hand to Kenya’s neighbours, leading to increased illicit trade and tax evasion.
