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Kenya Association of Manufacturers says local costs 12pc higher

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KAM chief executive Phyllis Wakiaga. FILE PHOTO | NMG

Manufacturers say they are experiencing a cost disadvantage of up to 12 per cent owing to favourable business environment in countries where firms enjoy low energy costs and other incentives.

They are consequently pushing for the establishment of the delayed trade remedies agency to counter fierce competition from cheap imports.

“Kenya needs to create a robust manufacturing sector via operationalisation of the Kenya Trade Remedies Agency (KTRA) that will provide a platform to safeguard local industries against unfair competition,” said Kenya Association of Manufacturers (KAM) chief executive Phyllis Wakiaga.

“Favouring imports over locally manufactured products, as seen with the increase in imported finished products from China to Kenya, will render our efforts to reinvigorate the manufacturing sector futile.”

The plea follows a two year-long wait for KTRA after President Uhuru Kenyatta assented to the Trade Remedies Act in 2017.