By Kevin Githuku
The Principal Secretary at the State Department For Industries Dr. Juma Mukhwana, has urged local investors to take advantage of easing tariffs in global trade amid the lapse of key trade partnerships including AGOA
Mukhwana has decried the import/export sector in Africa and Kenya in particular which export at least 80% of what is needed locally, versus only 20% of manufacturing exports.
According to Mukhwana Kenyans need to take up Investment opportunities that develop the country as opposed to waiting for ‘foreign’ investors to come and help out.
Centum Group CEO, James Mworia recognized the presence of Tax Incentives for the private sector which are a boost towards local and foreign investment and further pushed for more in order to onboard more Kenyan Investors. He also urged the government to make the incentives popular and ensure Kenyans are aware.
“I have spoken to many Kenyans and in particular local investors, but some don’t even believe that those incentives are there. They tell me they have to first consult with their lawyers. It is important that we convey certainty,” Mworia noted.
He further urged the government to stabilize its tax policy for better and long term investment plans especially to investors who want to invest long term.
“You never want to make a long-term investment if tax policy changes every twelve months. It can’t work. You will not attract any meaningful investment because there is a lot of uncertainty,” Mworia said.
Mukhwana further noted that the Ministry of Investments, Trade, and Industry has worked around the clock to get foreign partnerships and in particular The African Growth and Opportunity Act, (AGOA) which is being closed this September, but not many Kenyan investors have onboarded.
We opened about twenty years ago was the AGOA market in the US, meaning that you can make shoes, textile and export to the US duty free. This September, AGOA will come to an end. But what have we been exporting to the AGOA? First of all, we never even reached one percent of the the market which we opened.
The Principal Secretary was speaking at the Sectoral Forum on Strategic Investments and Inclusive Growth hosted by the Kenya Development Corporation (KDC) earlier today, dubbed NextFrontier Africa 2025, a three day summit happening under the theme: ‘Catalysing inclusive growth through strategic investments.’