The government has unveiled plans to introduce new taxes on imported goods that are manufactured locally in a move aimed at promoting the local manufacturing sector.
Principal Secretary (PS) Ministry of Investments, Trade, and Industry Dr. Juma Mukhwana said the President Ruto-led Kenya Kwanza administration seeks to increase local manufacturing from the current 7.3 percent to 15 percent by 2025.
The PS was speaking on Tuesday, June 13, at the Bomas of Kenya during the launch of the 1st International Symposium on Intellectual Property Protection and Enforcement.
“We have identified products that are being imported, but we can make them here in Kenya. We are not going to stop those importing, but we are going to tax them starting this financial year,’’ said Mukhwana.
The PS said the import levy will be used to support local institutions seeking to expand their manufacturing.
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The Ministry of Trade will also set up manufacturing facilities in all 47 counties to encourage more people into manufacturing, create employment and enhance the Gross Domestic Product, which has shrunk from 9 percent to 7 percent.
The project, which is worth Sh500 million, is a partnership between the National government and the county governments.
“We have come up with a formula where each county is identifying the value chain that can supply it with raw materials,’’
“Through a partnership between the national government and the county government, we are co-funding a project worth Sh 500 million to put up a common manufacturing facility in each county.’’ He said.
