The Cabinet Secretary nominee for Investments, Trade and Industry Salim Mvurya has undertaken to insulate local manufacturers from unfair trade practices that have seen many of them run out of business in the past.
He says the biggest challenge facing the government in providing a neutral business environment for all is a lack of clear legislation. He promises to introduce the same as a matter of priority if given the green light to become the next CS for trade and investments.
“Currently there is a lacuna in legislation to protect the local investors. One of the things that I want to bring to parliament is the Trade Development Bill and Trade Development Policy which will provide a clear dichotomy between foreign and local investors. We have to put in law,” he said
“I know there was a case of China which was handled. But we have to review the Trade Development Policy and the Trade Development Bill to ensure that we offer protection for our MSMEs,” added the nominee
Mvurya who previously served as the CS for Mining and Blue Economy also indicated that the country needs to revise Investment Act 2004 to ensure that protects local manufacturers against foreign investors who come into the country with big capital.
He said this is important if the country must realize its manufacturing ambitions especially given the timelines involved in this endeavor.
Mvurya has also pledged to find solutions to other challenges facing the sector that continue to impede local manufacturing.
“We have a big challenge with manufacturing now. We have a target to move it to 15% in 2027 and 20% in 2030, but if you look at the trends there are quite a number of challenges that hinder the manufacturing sector. Cost of power is one of them,”
“Cost of power is something we can negotiate with our colleagues in the Ministry of Energy so that we can look at the tariffs that encourage manufacturing or those that do not encourage manufacturing, with a view to reviewing them,” explained Mvurya who also served as Governor of Kwale County between 2013 to 2022
He further undertook to prioritize creating a conducive environment for investors to come in and put their money in Kenya.
“Manufacturing also requires an enabling environment. Currently, manufacturers want a plug-and-play arrangement. They want to come to the country, find that there is a shorter process for licensing, then show them where to work and they begin,” he said
At the same time, Mvurya is promising to stem instances of tax evasion schemes by a section of manufacturers operating in the country’s Special Economic Zones.
“As Minister of Trade, I will ensure that all manufacturers pay tax. We will use institutions in the ministry to ensure that we enforce compliance. Because if they (manufacturers in SEZ) evade tax, then it defeats the entire purpose of having them as a priority in the special economic zones,” he said while responding to a question by Majority Leader Kimani Ichung’wah who expressed concern that SEZs had turned into havens of tax evasions.
“We cannot give them all the advantages and they end up failing to pay the tax,” reiterated Mvurya.
