Kiambu County and Kenya Commercial Bank (KCB) Group launched the Kiambu County Huduma Card aimed at facilitating the collection of taxes in the county on April 15, 2015. The Kiambu County Card is part of the Kiambu County Digitika Programme to aid revenue collection and management and part of KCB’s wider initiative to enhance service delivery to citizens in the ongoing devolution process.

Speaking during the launch, Mr. Samuel Makome, KCB Chief Business Officer/MD Kenya said the initiative is part of the Bank’s investment in digital payments as Kenya increasingly moves into cash less economy. “This solution is aligned to the national agenda of automating all public revenue collections in the country. It allows the counties to plan well within the budget. At a glance, they can account for revenues collected on a daily, weekly, monthly and annual basis to allow for better allocation of resources and support intelligence expenditures,” Mr Makome said.

Kiambu County Governor, Hon. William Kabogo reiterated the need for an automated revenue collection system that allows for efficiency and accountability in order to track the activities of the various county units and the roles they play. “Taxes play an important role in the development of a county. Since devolution came into being, county governments have been grappling with the challenge of how to effectively collect their taxes and monitor how the same is utilized. With the coming of this solution from KCB, we are headed for a new era in the payments space and believe that this initiative will unlock the potential in the service delivery agenda that is critical for all county governments,” Hon. Kabogo added.

Dr. Fred Matiang’i, Cabinet Secretary, Ministry of Information, Communication and technology, speaking at the launch said that “The era of doing business in the analogue way is long gone and cases of escorting cash in armored cars has been overtaken by collecting money on the digital platform. This is a cashless environment and ICT is the game-changer where every citizen has to embrace it.” He added that the launch makes Kiambu County a benchmark to other counties.

Dr. Matiang’i lauded Governor William Kabogo for waiving way-leave charges on infrastructure development, saying this will enhance more infrastructural development that will attract more investors in ICT. “As a result of this decision, I am aware that several private players in the ICT sector will be laying fibre optic cables across the county without being bothered with high charges for their work,” added Dr Matiang’i.

As part of a project funded by the Belgium government, an 18km loop fiber optic cable will be connected from the Thika Super highway to the Kiambu County Headquarters. The government had a target to have all the 47 counties connected by December 2015.

For the county’s efforts to use the digital platform in service delivery, it would be showcased to partners in India in an upcoming partnership for its efforts to use the digital platform and would also be the first to be experimented on in the upcoming experiment of presidential digital talent program. He reaffirmed President Uhuru Kenyatta’s commitment to transiting the government to the digital platform. This is best demonstrated by Huduma centers that are doing cashless business and using Information Management Systems.

Businesses will soon be able to apply for their licenses online, complete the process and print the licenses at the comfort of their businesses in the next phase of the Kiambu Digitika Programme. In addition, the card, being a Visa Card, can also make other payments all over the world.

The card can be obtained from any KCB branches. After the card has been issued, dial *522# to register your card by entering your ID No. and Card No.

Cash can be loaded into the card by:

1. KCB Mtaani agent for FREE
2. Via M-PESA Paybill No: 522522
3. At a KCB Branch near you
4. KCB Mobile Banking

Once the card is ready for use, paying for any county fees or charges will just be a tap off away on the POS gadgets provided to the revenue collectors. The gadget produces a receipt with the details including; the name of the collector, location, time, how much, transaction code and cardholders identity.

Kiambu County pilots Semi – Aerobic Landfill 

Kiambu County made history by becoming the first place in Africa to pilot a landfill based on the “Fukuoka method”. The County Governor Hon. William Kabogo said that he felt honoured that UN-Habitat had chosen Kiambu to be the first to pilot the revolutionary semi-aerobic waste management method.

“This is something we are not taking for granted because Kiambu, just like many other places in Kenya and indeed Africa has a big problem addressing waste management,” he said. The project, modeled on the Japanese Fukuoka University’s technology application on solid and liquid waste management is being supported by UN-Habitat, through a joint collaboration with the County Government of Kiambu, Jomo Kenyatta University of Technology (JKUAT) and Japan’s Fukuoka University.

The land fill type has a comparative advantage over other waste management formulae because 70-100 tons of waste will be managed daily in addition to a leachate treatment system. The landfill will be located at Kang’okiin Thika town on 5 acres of government land.  “This method has been seen to work better and is now being accepted in very many places,” Prof. Yasushi Matsufuji, Fukuoka University said at the event.

Hon. Kabogo assured UN-Habitat and the national government that he would have a dedicated team to run the project and that he was confident it was going to be successful.

Speaking on behalf of the agency, the director of the Region Office for Africa at UN-Habitat Ms. AxumiteGebre-Egziabher reaffirmed the agency’s commitment to support Kenya in advancing the agenda of sustainable urban development. “While urbanization in Kenya and the rest of Africa is characterized mainly by numerous challenges, such as waste management, youth unemployment and safety; the rapid urbanization is also a huge advantage yet to be fully exploited. An estimated 35 percent of Kenyans reside in urban areas and the number is expected to rise to approximately 54 percent by 2030,” she added.

The KAM Machakos Chapter held a meeting on 26^th March 2015 at Savannah Cement. The main agenda was effluent management by industries following the release of a non-compliance list issued by Water Resource Management Authority (WRMA) alleging that several chapter members had not put in place an Effluent Discharge Control Plan (EDCP) within their industries.

Speaking at the meeting, WRMA Compliance Officer, Ms. Patricia Musau, emphasized the need for industries to develop and ensure waste water is managed and treated before release to the environment. She told members that the state body will support any industry through a step by step procedure until they reach the required levels and quality. She reiterated that industries are required by law to conduct quarterly EDCP tests and submit results to WRMA.

Members informed the State officials that a similar non-compliance list had earlier been released and they have treatment plants within their organization that are NEMA approved.

Clarification on the government body to receive the necessary forms and where licenses were to be paid out to was also sought. The WRMA officials clarified that NEMA issues licenses after a company meets the set regulation, however WRMA issues permits based on the threshold of effluent quality.

It was highlighted that a proper EDCP should clearly state: Name & details of the Organization; Quality and Quantity of water; Type and Source of Effluent; Design and location of the plant; A detailed procedure of how it works; Impact to existing water bodies; Permit from WRMA; A detailed monitoring Program; Emergency plans in case of breakdown and floods.

The chapter chairman, Mr. Gideon Aswani assured the WRMA officials of members’ cooperation and called for a consolidated certificate to be issued by both WRMA and NEMA. He asked both NEMA & WRMA to be attentive to industries’ needs and desist from over regulation.

Keroche Breweries has commissioned a new Sh5 billion state of the art processing plant. The one million hectolitre brew house has the capacity of producing 600,000 beer bottles per day and it can produce 30 different brands. Keroche’s Chief Executive Officer, Tabitha Karanja, noted that the increase in production is in line with their plan to increase market share to 20 per cent.

“The facility being commissioned today will guarantee that the promise to grow and be present everywhere in Kenya and beyond can now be effectively responded to. It will guarantee consistency,” said Ms Karanja. “In terms of technology, it’s the best in Kenya and in Africa,” she added.

She said the brew house will guarantee that the “Summit” brand can compete here at home, regionally and globally. The brewer has been facing supply strain as volumes failed to meet customer demand with its flagship beers Summit Lager and Summit Malt having on occasion reported stock-outs in some parts of the country.

The facility which is based in Naivasha will create 100 more skilled jobs at the factory and thousands more in the distribution chain. The plant will see Keroche’s annual capacity grow from 10 million litres to 100 million litres and will also enable the brewer to produce new brands. “Our apology to you for having taken too long to fulfil this promise, but we are grateful for your patience. We had to crawl before we could walk, we had to walk before we could run, and you have been our witnesses to these gradual steps,” Ms Karanja said.

The chief guest, Industrialization CS, Aden Mohammed celebrated the company for fighting on despite all the challenges and frustrations from the formerly monopolized industry. He said that the Government is committed to seeing that Kenya is a business friendly nation by improving the business environment. “Kenya is rated 7th globally among investor friendly markets and we are committed to see that we even become better,” said Mohammed.

He warned liquor companies against producing sub-standard goods saying they risked closure saying that the government had closed down over 80 liquor companies over the last one year for flouting set regulations.

CS Mohamed also added that many Kenyans had lost their lives as a result of consuming illicit brews but this is being tackled through tougher regulation. "We have learnt lessons the hard way and Kenya Bureau of Standards has come up with guidelines that should be followed by those manufacturing alcohol," he said.

Among the measures taken is ensuring manufactures have proper laboratories with qualified staff to test the chemical levels of their products. Mohammed further said that the importation of methanol which is used in illicit brews would be monitored at entry points and would be de-natured to ensure it is unfit for use by alcohol manufacturers.

He also added that the government has created a conducive environment for investors citing the recent developments in the energy sector which has seen an increase in power production. "We want to reduce the costs of starting up a business in Kenya as well as the cost of doing business to make Kenya an investor friendly country," he said.

Speaking at the same event, Nakuru County Deputy Governor Joseph Ruto, observed that many people spend most of their time and money in touring different industries abroad whereas Nakuru county is home to many industries that have adopted modern technology. “This launch is an indicator to international and local investors that Nakuru County is the place to invest in,” he said.


Nakuru Deputy Governor Ruto also commended Keroche for putting the county in international limelight in terms of investment adding that the county will support all investors who venture in Nakuru. 

Busia County held its first ever investor’s conference dubbed the Busia International Investment Conference. The conference was attended by key stakeholders from the business community (local and International), members of the diplomatic corps, academia and the political class with the chief guest, former Prime Minister, Hon Raila Odinga opening the Conference.

Busia County Governor, Sospeter Ojamoong, Vihiga County Governor, Moses Akaranga, Uasin Gishu County Governor, Jackson Mandago, Principle Secretary, Commerce and Tourism, Dr. Ibrahim Mohammed and KAM members from the region were in attendance. The theme of the conference was “Gateway to East and Central Africa: - turning Busia County from a transit port to a business hub.”

Hon Raila Odinga urged the county to utilize the rich resources and minerals that the county has to help spur economic growth. “Busia has the potential to be Kenya’s economic tiger but only if its resources are well harnessed,” he said.

Governor Sospeter Ojamoong showcased Busia County’s numerous investment opportunities promising various incentives to potential investors. “We will give free land to investors in the medical field as we strive to make Busia County a health tourism destination,” he said.

The Busia Governor also highlighted the various commitments received from investors especially the Ksh. 6 billion fertilizer factory to be set up by Korean investors. “My Government will localize vision 2030 to help drive our economic agenda with setting up of a dry port in the county, our flagship project,” added the Governor.

Vihiga County Governor Moses Akaranga also urged the county to take advantage of its vast mineral resources to drive its economic agenda while Governor Mandago advised on ways of streamlining regional blocks through collaboration to create niche products for the county to avoid replication of activities by neighboring counties

Upcoming event: -Kisii Investment Conference 19^th June 2015

The Kenya Association of Manufacturers (KAM) hosted Kenyan Ambassadors and diplomats for a cocktail and dinner. The ambassadors were attending their biennial training at leisure Lodge   Resort in Mombasa.

Speaking at the dinner ceremony, KAM CEO Ms Betty Maina applauded the envoys for the good job they are doing representing the country and its interests abroad. “It is a great honour for the KAM to host you today as we deliberate ways of facilitating international relations from your respective missions”.

Kenyan manufacturers applaud the work that you are doing in enhancing economic diplomacy to pave way for the trade of our goods competitively in the global market,” she added.

She noted that international trade plays a key role in Kenya’s economy and according to the 2014 Economic Survey, the value of Kenya’s total exports rose from 512.6 billion in 2011 to 517.8 billion in 2012 but fell to 502.2 billion in 2013. Kenya’s top markets for exports are in Africa, taking a market share of Ksh 231.4 billion (46.1%), followed by Europe Ksh 123.2 billion (24.5%) and Asia Ksh 107.5 billion (21.4%).

“However, manufacturers still face numerous challenges in international trade which include: lack of recognition of the rules of origin issued by competent authority in some countries, registration and re-labeling and certification procedures, non-tariff barriers to trade  such as  additional levies on Kenyan products in the regional markets, lack of market information on standards in some markets, lack of innovation and credits to expand firm capacity and to undertake innovation for new products at the national level,” said Betty.

Betty mentioned that manufacturers are seeking to expand their markets globally, more so in Africa, hence calling for more facilitation and information on the opportunities available in the countries where the ambassadors are serving, so that informed decisions on the priority countries to go to are made.

The specific markets of interest that businesses are targeting are; DRC, Ghana, Nigeria, Equatorial Guinea, Mozambique and Angola. Ambassadors and respective Trade Officers, were urged  to continue marketing Kenya as a destination for investments and a source of supply of various products and to target an increase of at least 10% of Kenya’s exports in the countries they are based. “There are challenges that exporters face in accessing some pertinent information in some countries and we urge Foreign Missions to support Kenyan exporters in the markets they represent by undertaking market intelligence and product specific surveys in terms of quality, pricing and market response, market trends and competitor information,” said Ms Maina. 

“The manufacturing fraternity has realized that there is need to focus on strategies that expand exports beyond the traditional markets. United Arab Emirates, Middle East, Russia and Eastern Europe are important promising markets for processed dairy products, beef products, tea, coffee, processed leather and we would like to penetrate those markets,” she added.

Pillar 5:Capacity building, Employee Wellness and Succession Planning

The unit ensures that KAM is financially sustainable, motivates a conducive environment for high staff retention & that the Association adheres to high standards of corporate governance.

KAM is Company Limited by Guarantee without shareholding. The Association is fully operated and financially supported by her over 800 current membership through annual subscription that is turnover based.

Annual subscription ranges between small Companies with an annual turnover of less that 20 Million to Over Kshs.10 Billion turnover. The range of billing is distributed in 10 Turnover categories which is available in our membership application form

Other advocacy work in terms of Research, Publicity, Promotion of Energy Efficiency and conservation work, Ethical Business is supported by the following Partners.

Government of Kenya through Ministry of Energy and Petroleum, Ministry of Industrialization, DANIDA, DFID, AFD, CIPE, BAF, MESPT, BHC and Confederation of Danish Industry for capacity building among others

KAM currently in 2015 has a staff capacity of 64 which includes professional staff, consultants, and support staff. Reporting structure is reflected in our organizational structure 

Through Membership support KAM is now a fully financially sustainable institution based in a newly developed six storey state of the art building and equally generating some revenue as an income generating Asset (Building)

Manufacturers set seven point priority agenda for 2015

Over 200 local manufacturers held a forum last week to discuss priority areas that need to be urgently looked into this year for a more robust industrial sector. The outcome of the meeting will contribute to formulation of the Manufacturing Priority Agenda 2015 which will guide the advocacy efforts of the association with the government, its agencies and regional institutions.

In her speech at the event, Ms. Betty Maina underscored the need for the exercise saying: “different economic aspects affecting trade and the business environment take on different hues, sometimes gaining importance or sometimes retreating in the background in the light of more pertinent issues. This calls for a different agenda and a different strategy every year.”

So far, the seven pillars consist of consolidated policy areas that have been identified and which if propped up will help the sector continue on an upward expansion trajectory to become the leading economic activity in the country. Manufacturing contributes around 21.3 per cent of Kenya’s GDP and is ranked second after Agriculture. Among the key pillars identified is more secure investments and increased market access to old markets and the opening up of new ones so as to increase exports. This can be done by bouying up the ‘buy kenya, build kenya’ policy and also through elimination of a double taxation structure and other regulatory overlaps brought on by devolution. Other pillars identified include securing justice for the economy, infrastructure, security, constitutional gains and the future of industry.

Mr. Konstantin Makarov, director at StratLink - Africa, Ltd painted a favourable outlook for the sector in 2015. “Tumbling global oil prices bode well for manufacturers with a discernible downtrend in the Producer Price Index in the second half of 2014. As a net importer of oil and petroleum products, the country stands to benefit from the downtrend in global oil prices,” he said. He asked participants to continue lobbying for more cost effective energy to mitigate the bite when prices stabilise and called for a Stabilization Fund, which targets oil exports in the coming years, to mitigate price volatility and revenue shocks. He also posited an increase in manufacturing costs due to the increase in duty on imported paper from 10 per cent to 25 per cent.

County Revenue Bills Workshop Held at Alba Hotel in Meru

A forum for counties on county money bills, which held from 17^{th -} 19^th November 2014. The CRA led two and a half-day workshop that was held at Alba hotel in Meru county, bringing together County Executive Committee Members of Finance and Economic Planning, Directors of revenue as well as members of the County Assemblies from the Finance Budget and Appropriation Committees. Participants were drawn from 6 counties namely Meru, Isiolo, Garissa, Mandera, Marsabit and Wajir counties. The private sector was represented by KAM, KNCCI Isiolo and Meru, the association of livestock farmers, KENFAP and other independent business people.

The participants discussed, among other things the outcome of the Maanzoni conference, the legal background of the county revenue laws especially the rating bill, the revenue administration bill, the licensing bill, the public participation bill and the finance bill. They stressed the need for cohesive revenue collection in the counties as well as an all-inclusive law making process, especially compliance with the constitutional requirement of public participation. The business community highlighted multiple taxation, especially for livestock moving from one county to another and many other business barriers along the way that delay delivery. They also cited the lack of willingness from the counties to work with the business community manifested by extortion and harassment by the authorities and a lack of proper policies governing the livestock sector.

From the meeting, the need for harmonized licensing, especially the single business permit emerged. The county representative agreed to adopt the CRA model laws after making some modifications and these bills will be reviewed in the next two weeks. They also highlighted the need for counties to introduce incentives to attract investors and a proposal for revenue sharing with the business community. A case in point is Marsabit county which gives back 30% of revenue collected from the slaughter houses to the farmers association for maintenance and other services of the facilities.

Regarding the issue of low turnout during public participation forums, it was resolved that counties set aside a reasonable budget to mobilize the public and exploit various mediums for wider reach like radio, print media, churches/mosques, organized groups, among others.

A consultant has been appointed for each cluster group to collect information that will assist in drafting and/or reviewing County Revenue Laws with an aim to improve on their quality as well as ensure rational revenue laws are in place in the Counties. After this meeting the consultant will be available to all counties to help them draft any of the 5 laws discussed during the meetings. 

A forum for counties on county money bills, which held from 17^{th -} 19^th November 2014. The CRA led two and a half-day workshop that was held at Alba hotel in Meru county, bringing together County Executive Committee Members of Finance and Economic Planning, Directors of revenue as well as members of the County Assemblies from the Finance Budget and Appropriation Committees. Participants were drawn from 6 counties namely Meru, Isiolo, Garissa, Mandera, Marsabit and Wajir counties.

The Consultant, Mr. Nyamondi, provided a background on Maanzoni and the resolutions from the meeting to partner with counties to ensure that the Revenue laws met the Constitutional and legislative threshold.

The participants were of the view that the counties over projected their revenue collections and the CEC Finance of Taita Taveta, Ms. Flora Maghanga Mtenya spoke of the lack of legislation which has led to delayed collections and demonstrations by business people. This is due to the fact that Counties were unable to implement the necessary laws in time. The forum was therefore important to assist counties to collect revenue.

The business community also made a presentation on their concerns such as a lack of supporting legislation, multiple taxation, a large variety of charges applied in different counties, service delivery for fees charged and lack of adequate public participation. Speaking on behalf of the business community Mr. Shabir Issak and Ms.Monica Solanki (ICPAK& KATO) emphasized the need for the formation of an enabling environment for business and the creation of the County Budget and Economic forum to ensure that the business community is involved in development of the laws.

The county representatives expressed the willingness of County Governments to listen and foster trust between the counties and the business community since a well-balanced and inclusive approach is essential for the proper governance of any country. The difference between council and county government is accountability which is determined by enacted legislation, how these laws are made and public participation at the county level.

Presentations were made by the Consultants on the constitutional and economic basis for Revenue Laws and the emphasis made on the key revenue laws which include the Trade Licensing Bill, Revenue Administration Bill, Property/ Rating Bill, Public Participation Bill and Finance Bill.

Focused group discussions to share and discuss experiences, give a status of the revenue laws, provide an indication of the assistance needed in the various counties and agree on a way forward were held.
Following discussions, the following are the recommendations proposed;

  It was agreed that the participants would share what they have learnt from the forum to all the relevant people in their counties so that the revenue legislation could be fast tracked.

 County participants in the forum would consult with the relevant persons in their counties and provide tentative dates for the consultants to visit their counties and help develop/finalize the revenue legislation.

  The counties would share any laws they already had in draft/committee stage/executive with the CRA Consultants

 KAM would provide the contacts of all their business partners in the cluster counties to facilitate future engagements with counties especially in public participation.

 There was need to have greater inter-relations among the cluster counties as it was noted that some counties were quite behind with their legislation e.g Lamu

 There was need to have the county executive members in the relevant sectors (finance & trade) come together to fast-track the process on legislation of revenue laws. It was proposed that Taita Taveta County would chair the forums.

  It was proposed that in future meetings on legislation, county attorneys or legal officers should get invitations to attend the forums.

  It was proposed that once the TORs for this project are accomplished, there was need to have a forum to brainstorm on other revenue raising avenues for counties.

  It was proposed that the county executive members should send the same people in future forums on the same subject for ease of understanding the discussions and for continuity.  

  It was recommended that CRA, should support another forum that would provide for expertise such as the current forum It was agreed that that there would be another follow up meeting around March to evaluate the progress of revenue legislation in each county.

County Cluster meeting held in Vihiga

CRA today (20 Nov) held a county cluster meeting for county representatives drawn from Nandi, Bungoma, Vihiga, and Busia and Laikipia Counties in Vihiga County. The meeting was a follow up for the maanzoni meeting which resolved to have consultants visit cluster counties to assist them to come up with properly drafted revenue laws.

During the forum, a legal background of the county revenue laws was given and the tariffs and pricing policies discussed. Due to the hasty transition from devolution, collection of county revenue has been fraught with issues for most counties. CRA Commissioner, Prof. Kimura  also said gave a background of development in country saying that Kenya was lagging behind countries such as Singapore which also got independence at almost the same time as Kenya. “Sessional paper no. 10 of 1966 created a blueprint for Kenya’s development and it was authored by 2 people one who was Tom Mboya, then the secretary general  and the other who was Mr. Mwai Kibaki. Singapore also crafted a development plan at the same time. 50 years later the GDP between two countries is very big. The reason Singapore was that they kept to the plan," he said and added in public finance a solidly built finance bill is needed otherwise, you cannot do any proper planning. 

According to CRA legal officer, Martha Maneno, “Ideally we should not have repealed the local government Act without transitional provisions, but this was done automatically after the elections. The 3 months provided for by the County Management Transitional Act was not sufficient for Interim laws to be passed,” she said.

Finance Acts have since then been used as a basis for collecting revenue but people are bound to oppose a finance bill without a clear tariff and pricing policy. Counties are using the Finance Act to set these tariffs and prices instead of setting charges while in reality the Finance Act should only be used to amend the revenue laws. The proper way to set up these tariffs and prices is through the use of regulations. Prices for services should be anchored in country regulations. To use the example of Agriculture which is a county function, the CEC of Agriculture can put it in regulations which set the tariffs. If new rates are introduced every year, the end up being problematic, because they have to be ratified through participation. This has led to the finance bills in various counties being rejected.

Finance Acts should just amend the revenue legislation but not to administer or collect revenue. But most counties do not have the necessary enabling legislation to provide a basis for the finance bills. Counties are using by-laws under the repealed local government act. This confusion has led to double taxation and has affected investors and local business people alike in a detrimental manner. Recommendations from the Maanzoni forum included streamlining taxation and licensing regimes. Charges should be pegged to a service delivered by the county so that businesses don’t resist county charges as they have been doing.  Taxes on the other hand do not have to be based on a service. A national forum will be held annually to review these issues and clusters will also meet at least twice a year to discuss the issues that arise. Consultants will also help Counties to attract investments so as to raise more revenue.

Prof. Joseph Kimura spoke of the difficulties that the CRA has encountered to date in the counties especially in encouraging counties in raising their own revenue without counting on revenue from National Government.

Georgina Wachuka, head of regulatory affairs at KAM spoke of challenges faced by business were too many and confusing. Many companies have now removed branding from their transport vehicles so as to stop paying multiple entry levy fees. The cost of Single business permits has in some instances increased by as much at 1000% which has had seriously implications for businesses. 

County Money Bills Cluster Meeting held at Lake Elementaita

Statement by Betty Maina, KAM CEO- Africa Industrialization Day 

As the continent observes Africa Industrialization Day today, KAM joins the rest of the African Union in its drive towards industrial growth and economic transformation in Africa.

Manufacturers in Kenya appreciate the good work that the Government is doing in creating an enabling environment in Kenya and I believe that we can work together to create employment and reduce the cost of doing business in the country through partnerships between the public and private sector.

In this industrialization journey, we are going to ensure that we leave no one behind and include, especially, the small and medium enterprises (SME). KAM will be rolling out programmes in the coming year targeted at developing the SME sector.

Manufacturers are keen, to tap into the immense opportunities that are on the African continent. This can only be done if we address economic fundamentals which are key to ensuring that we attract both local and international investors to expand their operations in Kenya and export to the African continent and beyond.

We are grateful that our Government has embarked on an initiative to open new markets in Africa and we are hopeful that as we open the markets and sign the trade agreements these will be followed up by quick implementation that ensures that trade commences to the mutual benefit of all stakeholders.

As we intensify our efforts to create more jobs and improve efficiency in the manufacturing sector we are pleased that we have started making headway with Government on the Buy-Kenya Build Kenya initiative. We also look forward to enhancement of the policy on local content for the Buy Kenyan- Build Kenya to increase patronage of locally produced goods and services. Multinationals in the manufacturing community are also discussing a common policy on how to increase uptake of locally produced products and services in their value chains.

Manufacturers continue to support productivity based wages, increased trade on the African continent, human capital development, reducing the cost of doing business, market access issues in the East African Community and trade with European countries; continuous engagement with the manufacturing sector and promotion of small scale enterprises.

The manufacturing sector currently employs over a million people directly and millions more in downstream activities. There is a drive by the manufacturing sector to create more jobs and reduce the number of jobless people in Kenya. This is in line with the Government’s quest to create 1 million jobs in the next three years.

We may not be where we want to be as a country but we applaud efforts that we are seeing towards achieving our goals as a nation. We as industry would like to empower our local talent and are pleased that there are positive developments in the education sector where Government is aligning the education curriculum to ensure that the skills from Universities and Vocational Training Centres match industry requirements.

 KAM represents a constituency that contributes to wealth creation by value addition through the manufacture of goods that are sold in local and international markets. The over 850 companies which are members of Kenya Association of Manufacturers (KAM) are  keen on spurring economic growth and I must say that we have done the best we can to export despite the challenges that we have in the operating environment.

KAM applauds the Government in its efforts to reduce the cost of doing business. We remain grateful to Government for efforts towards reduction in the cost of power and would like to see the charges going down to below USD 0.10 per kilowatt hour as promised.

 As a country we pride ourselves with a lot of products which by quality and standards can compete anywhere in the world. There is need to protect the local industries from intellectual property right thefts and trade in counterfeit goods which has led to the closure of some industries. Manufacturers would want to see the current investments protected and also attract more investment to complement the already existing industries. To this end we urge Government to maintain policy stability to ensure that investors are not subjected to sudden policy changes.

The African market continues to be the largest destination of Kenyan goods and there is need to guard this market jealously.

Manufacturers do not want to rest on their laurels because of the huge market share that we have in these markets because we are witnessing that the competitiveness of our products is largely being threatened by the high cost of doing business in Kenya.

 As  KAM we believe in inspiring global competitiveness because we believe that for us to tap into the global markets our products need to be able to compete with our competitors from all over the world.

Industrialization will play a crucial role in increasing our exports to the global market.  It is without any doubt that countries that have placed great emphasis on industrialization the world over have done well. No country in the world has achieved prosperity without a vibrant industrial sector. This growth will have to be underpinned by a growth strategy which promotes increased resource-based product range, moving up the ladder in agro-processing and expanding exports of resource-based commodities within regional markets.

It is important to mention that EAC with 136 million people, COMESA with 433 million people and USA under AGOA with 400 million people and Europe with 400 million people will continue being important markets for Kenya.

We need to maximize our existing market access which we have already created either through entering free trade areas like COMESA or East African Community and the EAC-EU Economic Partnership Agreement- whose negotiations have been concluded and Kenya we are glad that Kenya will be back on the EU Market Access regulations with effect from January 1, 2015 although we had hoped that negotiations would have been concluded sooner.

For Kenya to forge ahead in increasing export trade, export diversification will be quite necessary and will require to be sustained by appropriate and coherent policies. This requires a stable macro-economic environment, provision of correct incentives for promotion of primary commodity processing and resource-based manufacturing activities and complementary policies for attracting investments.

On the EAC front, there is need to fast-track, at high level with other EAC Partner States, the realization of  a full East African Common Market or a single market and urge the Partner States to encourage free movement of  goods, services and  persons.

We still call upon the Kenyan Government to consider recapitalization of the Industrial Development Bank or another investment vehicle for financing industrialization projects in the country.

As we seek to expand the manufacturing sector, we continue to plead for a conducive operating environment. We can only be the industrial giants that we dream to be if the operating environment is friendly to our businesses.

We remain committed to working with all stakeholders  to realize a double digit growth in the economy and this calls for removing obstacles in the way which are slowing down growth and industrialization.

In conclusion, it would be a great joy for industry if a percentage of the country’s GDP could be channelled towards industrialization.  We believe that a country is as good as its industry and we can make a difference in this generation for posterity. The main message from manufacturers is that we support Industrialization and would like to continue working with all stakeholders to make Kenya an indomitable industrialized nation in Africa. 

May Africa continue to works towards industrialization!