Kenya is seeking to revitalize its existing trade, investment and manufacturing laws in a bid to maximize its participation in key domestic and international markets.
The country has embarked on a legislative and policy reforms that are expected to spur manufacturing and strengthen the country’s trade competitiveness.
According to Investment, Trade and Industry Cabinet Secretary Salim Mvurya, despite noted increase in foreign and domestic direct investments, Kenya still faces challenges which drag the country’s investment climate and business environment.
CS Mvurya says these hurdles have seen manufacturing sector gross domestic product contribution decline to 7.6pc from 15pc within a decade.
“We are worried and that’s why we are going out there to ask manufacturers to tell us what are some of the things we can do accelerate these achievements, ” said Mvurya.
The ministry is now seeking proposals on six issues including measures to attract, incentivize and derisk private investments in all sectors of the economy, rationalisation of incentives to boost manufacturing, measures to improve consumer protection and fair trade and measures to improve the performance of the export sector, foster structured commodity trade and ease costs associated with domestic trade.
CS Mvurya says the new changes in legislations and policies will ensure Kenya maximizes on some of the trade deals it has with various countries such as European Partnership Agreement (EPA) where Kenya has access to 27 European markets as well as the African Continental Free Trade Area (AfCFTA).
“We have a potential that we are selling which is not translating to real entry into those markets and that is why it is important for us to go out there and talk to the real people who do these things on a daily basis to tell us how we can make this environment much better for these kinds of businesses,” added Mvurya.
Other proposals which stakeholders such as members of the public, traders, manufacturers, investors and the private sector are expected to have an input include harmonisation of taxes within the manufacturing sector to eliminate distortions and provide a predictable taxation structure and put in place measures to enhance quality of manufactured goods, ensure consumer protection and fight counterfeit.
The submissions are expected to inform new legislations and policies wich will be submitted to the National Assembly for approval.
Submissions will be received by the ministry until September 27, 2024.
