KAM pays a courtesy call to the Cabinet Secretary of the Treasury, Mr. Henry Rotich
Members of the Kenya Association of Manufacturers (KAM) yesterday (July 11) paid a courtesy call to the Cabinet Secretary of the Treasury, Mr. Henry Rotich at his office. The entourage consisted of the KAM Chairman, Mr. Polycarp Igathe, former KAM chairman, Mr. Jas Bedi, the CEO Betty Maina and other board members. Mr. Mike Macharia, CEO of Seven seas technologies and a board member of KITOs also joined the team on behalf of Kenya Information Technology and Outsourcing Society (KITOS).
During the meeting KAM CEO, Ms. Betty Maina thanked the Cabinet secretary for rationalization of the Uganda list and the elimination of duty on the paper and paperboard saying that it had taken 9 years to achieve that goal. “When I came to KAM, 9 years ago, this was the most important agenda of the day and it has finally being resolved,” she said. She also presented the cabinet secretary with a copy of a KAM report on excise harmonisation in the EAC region saying that the differential duty regime across the region is hurting people who produce excisable goods.
The Cabinet Secretary said Kenya’s macroeconomic outlook was stable and favourable so far and that the Treasury was committed to improve the general policy environment and would look into outstanding key issues. He spoke of Kenya’s performance in the World Banks ‘Doing Business Index. “Kenya moved from a rating of 0.1 to 3.9 on the index and we were the best performers in sub Saharan Africa in policy and institutional frameworks. The Sub-Saharan average is 3.2. The Index placed us among the top performers,” he said.
Mr. Rotich rallied manufacturers to support the VAT bill. KAM Chairman Mr. Polycarp Igathe thanked the cabinet secretary for gains in the budget statement saying: “We warmly received the budget statement. We are excited about the public procurement tendering process - from start to finish - 30 days and the economic shift from subsidising to short term paying. However, we need government to pay us back our kshs 29 billion which you owe us you promised to subsidise certain consumption.”
He also asked the Cabinet Secretary to look at certain issues which were creating an unlevel playing field for manufacturers such as the duty remission scheme, duty on spare parts and industrial sugar. Members suggested that the railway development levy could be charged depending on the category of goods imported. They also requested a review of the public procurement laws which should be revised to clear up any loopholes due to ambiguities.
The software industry requested the government to outsource software requirements to local companies saying Kenya had the capacity and requested for special recognition under the procurement laws. They want the government to encourage foreign companies awarded tenders in Kenya to work with local companies. “Kenyan Intellectual property is domiciled elsewhere oversees not here and yet we have a great domicile for companies,” said Mr. Macharia.