State agencies have imported huge amounts of powdered milk that can be acquired locally, forcing Trade Secretary Peter Munya to report the issue to the Cabinet seeking enforcement of a law that requires such procurement be local.
Mr Munya says he will raise the issue when the cabinet meets Tuesday to have the executive enforce the law that requires all government agencies to buy locally goods that are made in the country, under the ‘Buy Kenya Build Kenya policy.’
This comes even as it emerged that seven million kilogrammes of powdered milk was imported into the country between January and September this year. The imports come amidst a huge production glut that has sharply cut producer prices.
The CS said it is unfortunate that agencies have refused to adhere to the directive, hence going against the spirit of local procurement.
“I am presenting a report to the Cabinet on how these agencies are going against a government directive, with the view to having it enforced,” said Mr Munya in an interview.
This comes at a time when milk processors in the country are grappling with huge stocks of long-life products including powdered milk that they are unable to dispose of.
Buy Kenya Build Kenya is an initiative that requires all state agencies to procure goods that are found in the country other than importing them in order to boost the economy.
For instance, the government is at the moment procuring police uniform locally to boost the ailing textile sector in the country. In September, the government launched the revamped police uniforms as part of reforms in the police service.
Kenya Association of manufacturers has argued before that by procuring directly from local manufacturers, the government will save huge costs typically incurred by involving middlemen and traders.
KAM says the move by government to involve local industries in the production of uniforms for disciplined forces is in line with calls to reduce imports, build capacity for local industries, whilst expanding existing value chains and creating new ones.
Mr Munya, however, did not name the specific government agencies that are shipping in milk into the country.
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