This archive report was first published on 28 November 2019.
On November 28, 2019, the Kenya Association of Manufacturers (KAM) called on the government to widen the tax bracket to alleviate the manufacturing sector from heavy taxation.
The sector's CEO, Phyllis Wakiaga, attributed the slowed growth in the manufacturing sector to high production costs, primarily driven by heavy taxation and increasing electricity costs.
Despite contributing 7.5% to the country's total GDP, the manufacturing sector accounts for 20% of the total tax revenue, according to KAM.
The association urged the government to increase tax cuts for manufacturers and clear pending bills to address the sector's liquidity crunch.
High taxation, coupled with the influx of counterfeit products and high energy costs, is driving many manufacturers out of business, prompting the sector to explore alternative energy solutions.
KAM is conducting an energy audit on manufacturing companies to increase investments in integrated green energy solutions and is encouraging financial institutions to finance such ventures.
The association also encourages investments in carbon credit trading schemes to lower carbon emissions and is urging county governments to establish industrial parks to boost the manufacturing sector.
