Manufacturers Express Concerns Over Proposed Finance Bill 2024
In a press conference held today, the Kenya Association of Manufacturers (KAM) addressed the government’s Finance Bill 2024, highlighting both commendations and reservations regarding its potential impact on the manufacturing sector and consumers alike.
Anthony Mwangi, CEO of KAM, acknowledged the government’s efforts to stimulate manufacturing growth but cautioned against certain provisions in the Finance Bill that could impede progress.
Mwangi stated, “While we appreciate the government’s commitment to boosting the manufacturing sector, we have serious concerns about several proposed measures that may have adverse effects on our industries and the wider economy.”
One of the primary concerns raised by KAM is the proposed Export Investment Promotion Levy (EIPL) on raw materials. Mwangi explained, “Imposing EIPL on raw materials without proper data verification could significantly increase production costs, undermining the competitiveness of local industries both domestically and in export markets.”
The introduction of an Eco-Levy also drew criticism from KAM.
“While we fully support environmental conservation initiatives, the proposed Eco-Levy risks duplicating existing schemes and may lead to substantial price hikes on essential products, burdening consumers,” Mwangi remarked.
Furthermore, KAM expressed apprehension about the proposed increase in the Import Declaration Fund (IDF) and changes to excise duty.
“Raising the IDF and imposing additional excise duties on products like plastic and vegetable oils could further inflate costs for manufacturers and consumers,” Mwangi stated.
In urging the National Assembly to consider stakeholder input, Mwangi emphasized the need for a National Taxation Policy to provide certainty and consistency in tax regulations.
“It is essential that policymakers prioritize supporting the manufacturing industry to spur economic growth and alleviate the cost of living for all citizens,” he concluded.
He called on the government to engage with stakeholders, including citizens and the business community, to ensure that the Finance Bill 2024 supports sustainable economic development while mitigating adverse impacts on local industries and consumers.
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