Business News

No more junk, pleads Ndemo

By WINFRED KAGWE
Posted  Friday, March 5  2010 at  18:02

The Ministry of Information and Communication is proposing a ban on importation of refurbished computers in the next budget to reduce e-dumping in Kenya.

Permanent secretary, Dr Bitange Ndemo says that Kenya, like other African countries, has become a dumping ground for used machines.

“It has become big business for the foreign companies we import from as some are paid by their governments to amass the dumped electronics, refurbish and sell them to us,” said Dr Ndemo.

Zero rated

In 2008, the government slapped a 25 per cent excise duty on all imported refurbished computers and zero-rated new ones to minimise dumping but now the ministry seeks a total ban of junk.

“The exemption from tax for new computers has already seen a significant drop in prices and there is no reason why Kenyans should continue to use second hand machines,” said the PS.

He spoke during the release of the digital life of Kenyans survey findings at the Intercontinental Hotel, Nairobi on Friday. Dr Ndemo said they were already in talks with Treasury and other relevant bodies to see how the proposal can be worked out.

Balancing between the need to serve the masses with affordable computers and curbing technology dumping is likely to bring conflict between the government and distributors of used machines. This is due to the huge number of people who rely on the trade for their livelihoods.

The PS is, instead, proposing investment into programmes like establishment of local assembling plants that would create job opportunities for Kenyans.

Create jobs

“We have enough graduates from our local universities and colleges with skills to assemble or even make new computers which would create job opportunities, spur further growth in ICT and reduce on the massive e-waste,” he said.

According to Unep statistics released last year, an estimated 20 to 50 million tonnes of electronics waste is generated annually around the world with most ending up in developing countries.

The study conducted by TNS research international and the ICT Board of Kenya sought to analyse how Kenyans consume the internet and identify opportunity areas for those wishing to invest in the online world.

According to the findings, 63 per cent of Kenyans now have internet as a priority compared to 23 per cent who felt they could not live without mobile phones.

The findings also showed Kenyans spent more time -73 per cent - on foreign sites compared to local pages. This was attributed to lack of adequate local content.