Kenya Association of Manufacturers (KAM)has applauded and supported the Government’s efforts to reduce the cost of living at a time when Kenyans are struggling to make ends meet.The sharp increase price of house hold commodities e.g. food,housing and healthcare are making it difficult for Kenyans to earn a decent living.As such,The Association is committing its full support and to work with the Government to undertake crucial actions and policies aimed at addressing the root causes of high cost of living and alleviate the heavy burden on common mwananchi.
‘‘While we continue engaging the Government,we are concerned by the plan to import duty free products including 125000MT of finished and refined edible oils/fats through the Kenya National Trading Corporation (KNTC) for a peripod of one year to ostensibly create a price stabilizer for essential household commodities and alleviate the current Drought situation in Kenya”Read part of the statement from KAM.
KAM has over 1200 members mostly drawn fom Manufacturing sector.Tha Association wrote the letter to the Ministry of Trade,Investments and Industry(MITI) on 23rd January 2023,seeking clarification on the duty-free importation of finished and refined manufactured goods.However KAM states that its contuinuing to seek the engagements with the Ministry to find out long lasting solution.
For clarity the local edible oil manufacturing capacity is adequate to supply local markets requirements and is currently operating at 60% of the installed capacity.From the Associations perspective the move will promote unfair competition to local industries and the Government stand to lose the revenue to the tune of KES 3.5Billion and put over 40,000 jobs on the line.KAM calls the Government to reconsider the plan and engage the memnbers of the Association to find a long lasting and amicable solutions.
Kenya’s edible oil processing industry is Vibrant with over KES 10Billion investments,currently,the sector as combined installed capacity of 7,160MT.The industry generates over Kes.52Billion in revenue for the Government annually through taxes.In addition the sector directly employs 10,000 employees and over 30,000 indirectly across the value chain.