KAM tips new measures to cut price of goods

Kenya Association of Manufacturers (KAM) expects locally produced goods to enjoy pricing advantage after the government announced an array of incentives.

But the lobby asked manufacturers to embrace 24 hour operations to benefit from off-peak power tariff after Kenya Power #ticker:KPLC halved the cost of electricity to facilitate night-time production.

“This is a welcome move that will create demand for locally processed products. The 20 per cent export levy on copper waste and scrap metals is an additional gain that will create a level playing field in the steel and metal sector,” it said.

KAM noted significant gains were achieved for steel and metal, paper and paper board, textile and leather subsectors where a 35 per cent import duty was imposed with a view to encouraging local industries.

“These being labour-intensive and crucial subsectors have witnessed decreased production as well as suffered losses due to uncontrolled cheap imports that sliced off a huge chunk of their local market share. It hurt their expansion prospects, denying Kenyans jobs and led to lower revenues for the national economy,” it said.

READ: 707 large firms enjoy discounted night electricity tariffs

Treasury secretary Henry Rotich increased import duty for processed steel and metal, paper and paper board, textile and leather product by 10 per cent. The lobby welcomed the Sh800 million kitty for small-scale leather and textile operators, saying construction of sheds would improve the working environment.

KAM said the additional Sh1.4 billion funding for New KCC and Rivatex will further boost their ability to process all produce received from farmers.