Business / News
Sunday, 02 Apr 2017 13:20 EATekariuki@kenyafreepress.com
The Kenya Association of Manufacturers has commended the government for allocating Sh1.6 billion for the leather industrial park development and textile development. An additional Sh450 million has been set aside for the revamp of Rivertex, which was once Kenya’s textile powerhouse. This is good news for local manufacturers of textile because it focuses the growth of the sector to meet the local demand for affordable and quality clothing.
The 2017- 2018 budget has also proposed other tax measures aimed at growing local industry and enhancing our competitiveness as a country. To cushion the local manufacturers of pesticides input, the government has proposed to exempt these products from VAT, and to include 16 percent tax on all pest control imported products.
Another big win for manufacturers this year, KAM said, is the amendment of the Excise Duty Act to allow refund of excise duty paid on illuminating kerosene used in the manufacture of paint and resin by registered manufacturers, a development which will positively impact local manufacturers of paints and resin by making their products regionally competitive.
The 80 percent remission of excise duty on locally manufactured beer made from locally produced sorghum, millet or cassava was also praised by KAM, which said it was good news for local beer manufacturers and for Kenyan citizens as it reduces the uptake of dangerous illicit brews often used as alternatives to expensive brews.