EFFORTS TO INCREASE MANUFACTURING IN 2024.

Brian Mang’oli

During the current fiscal year, the government spent 240 billion Shillings for the purchase of locally assembled products for key government entities.

According to Dr. Juma Mwana, the Principal Secretary in the State Department for Industrialization, this initiative aims to boost the manufacturing sector through the “By Kenya, Build Kenya” initiative. Furthermore, further steps will be taken to promote industrialization in the country and support the growth of locally made goods. 

In addition, he highlighted that the government aims to enhance its procurement of domestically manufactured products beyond the existing 40% benchmark, with the intention of disseminating the advantages of industrialization.

manufacturing sector urged the government to implement  a pro-industry national tax, lowering the rate for raw and intermediate products, reducing IDF rate  from 2.5% to 1.5% for raw materials, plant and machinery be exempted to reduce cost of investment and reduce import revert investment deductions allowance (IDA) to the previous provision.

The manufacturers emphasized the significant expense of electricity, which continues to be a major concern for manufacturers. They are urging the Ministry of energy to establish a more economical rate of 10 Shillings per kilowatt hour.