Economy

Industrialists decry multiple county levies

gudka

KAM chairman Sachen Gudka. PHOTO | DIANA NGILA

Manufacturers have renewed calls for elimination of multiple county and national government levies that have slowed their efforts to sell in the domestic market.

Speaking when they launched their Manufacturing Priority Agenda 2020 (MPA2020) last week, the industrialists said an agreement must be reached to scrap the multiple business permits and other levies charged as goods move across counties.

Kenya Association of Manufacturers (KAM) chairman Sachen Gudka said the numerous county charges coupled with other regulatory licences at national level made Kenya unattractive to do business with Kenya-made goods priced beyond reach of most citizens.

“While county governments were to become the new frontiers for the promotion of investments and growth of the manufacturing sector, they have turned out to be major impediments in their quest to raise local revenue targets,” he said.

Mr Gudka said this saw product-makers pass on the county expenses to consumers via price increments.

In Nairobi, manufacturers delivering goods to retail chains must acquire a trade licence for every line of business and for each vehicle as well as pay offloading fees on a per-trip basis.

MPA2020 calls for a national consensus on licences that must be agreed upon on a participatory basis where a manufacturer will be allowed to pay county fees once annually within the county they operate from and not in every county they visit.

To promote competitiveness and a level playing field, it calls for establishment of a high level government approval process for any regulatory agency imposing corrective measures touching on businesses.

Manufacturers said counties must be discouraged from introducing no-service linked fees, charges and levies and that the county government revenue raising regulation bill (2018) be expedited to provide mechanisms for new levies, fees and charges by county governments.

Additionally MPA2020 urges the national and county governments to play an active role in opening up markets for local goods by implementing the ‘Buy Kenya, Build Kenya’ decree by instituting strict policies that discourages sale of illicit and imported goods.