Manufacturers seek national dialogue on new taxes

Manufacturers want a national forum to discuss recent tax increases, saying Kenyan-made products were fast becoming uncompetitive in the global market.

A day-long workshop held in Nairobi heard public and private sector players must work together to formulate ways to widen the tax bracket while easing taxes blamed for increase of retail prices due to increased production costs.

Kenya Association of Manufacturers (KAM) acting chief executive Tobias Alando said the conversation will result in formation of a task force to scrutinise the tax laws.

“The taskforce drawing its members from both the private and public sector should look at taxation as well as monitor how collected taxes are spent with an eye on influencing projects’ prioritisation,” he said.

KAM vice chairman Mucai Kunyiha said the Kenyan government was working against its own development agenda where manufacturers lack incentives to increase productivity.

“Taxes have been placed on raw materials, finished products as well as on petrol. Buyers also pay VAT, making Kenyan- made goods so expensive that companies are downsizing to remain afloat while sales are going down,” he said.

Mr Kunyiha supported formation of a multi-stakeholder taskforce, saying Kenyans’ confidence in use of taxes will be restored if wastage of public funds is curbed and projects improve quality of life.

The forum heard that recent tax changes had caused confusion with manufacturers, traders as financial institutions unaware of when the excise tax was to take effect.