Companies

KAM asks Treasury to pay importers Sh300m for delays

wakiaga

Kenya Association of Manufacturers CEO Phylis Wakiaga. FILE PHOTO | NMG

The manufacturers’ lobby has petitioned Parliament to compel the Treasury to compensate importers who incurred huge losses during the ongoing crackdown on counterfeits and tax evaders.

The Kenya Association of Manufacturers (KAM) yesterday told lawmakers that the Treasury should compensate the importers for port storage fees, customs warehouse rent, removal and demurrage costs for the period July 1, 2018 until “unwarranted” interventions are withdrawn.

“Imposition of storage charges should commence only after all State agencies clear the goods. This will ensure that manufacturers do not bear the cost of inefficiencies.

“This especially since the demurrage has now been considered an income to the government,” KAM chief executive Phylis Wakiaga told the Senate committee on Tourism, Trade and Industry.

Ms Wakiaga said Kenya’s food and beverage sector has reported over Sh300 million in penalty for storage, port and demurrage charges for the period July to October 2018. Ms Wakiaga said entry of the multi-agency team (MAT) at the port affected importation of sugar.

“KAM recommends the release to importers of all pre-verified white refined sugar for industrial use being imported by recognised and registered manufacturers subject to full customs clearance and compliance without intervention or further delay,” Ms Wakiaga said.

She said State agencies should conform to the directive issued by the Trade, Industry and Cooperative Cabinet Secretary on harmonisation of efforts under the pre-verification conformity (PVC) programme under Kenya Bureau of Standards (Kebs).

“This will ensure reduction of clearance time for consignments of raw materials and inputs from manufacturers to promote trade facilitation,” she told the committee chaired by Kirinyaga Senator Charles Kabiru. Ms Wakiaga proposed that all government agencies should accept declarations contained in the certificate of conformity issued by Kebs approved agencies but retain their right to undertake random sampling of imports.

“We recommend the strengthening of Kebs by identifying mitigation areas and challenges and ensure sufficient budgetary allocation as this is a function beyond the capability and mandate of the multi-agency team,” she said.

Ms Wakiaga told Senators that before the introduction of the standard gauge railway (SGR) freight service, the cost of moving a container from Mombasa to Nairobi was about $800 and $1,000 for the20 foot and 40 foot container respectively.

“However, this has now gone up by about 70 per cent and 93 per cent for the 20 foot and 40 foot container respectively,” she said.