Crackdown on illicit goods lifts Kenyan industry

The sustained crackdown on illicit goods has created new demand for Kenyan made products, raising order numbers for manufacturers.

The Kenya Association of Manufacturers (KAM) chairman Sachen Gudka on Wednesday said edible oil manufacturers had reported the highest gains at 62 percent, which has resulted in more staff being hired and in some cases an increase from two to three eight-hour shifts.

Speaking during the opening of a four-day 60th anniversary celebration for KAM, Mr Gudka said the food and beverage sectors had also registered major gains which he said were being eroded by continued withholding of refunds that forced many companies to incur new costs to fund their operations.

“Local procurement of goods and services by public entities is a welcome move that has stirred several sectors especially textiles after the disciplined forces opted to source for their new uniforms locally. Nakuru’s Bedi Investments has since doubled its staff and more have registered new investments that show local public sourcing is good for our economy,” he said.

Buy Kenya Build Kenya

President Uhuru Kenyatta, in a speech read on his behalf by Trade Secretary Peter Munya, supported local sourcing of goods and services to affirm conformity by ministries and other State agencies.

The President said textiles, leather, food, steel, timber and medical drugs were among the first items enlisted into the Buy Kenya Build Kenya Initiative adding that Kenyan manufacturers will benefit more as government agencies adhere to the new policy.

Mr Gudka also called for the gazettement of the energy rebates to corporate tax legislation saying it portends a big boost to manufacturing freeing more money to be spent in new investments and in meeting operation costs demands. KAM also urged for a waiver of the import declaration and railway development levies charged on imported raw materials as an incentive for local manufacturing while importers of finished goods need to be subjected to the two levies.

The four-day event has attracted manufacturers from across the board where attendants will buy goods at ex-factory prices.

Commenting on invasion of Tata Chemicals premises by Kajiado County Government officials and residents, KAM urged for restraint in company-county government licence and land disputes, saying arbitration should be used when disputes arise.