The Kenya Manufacturers Association (KAM) now wants the government to abandon the fuel subsidy programme in order to avert the crisis that has paralysed operations in many parts of the country.
In a statement, KAM noted that the abolition of the subsidy programme will enable stabilise supplies in the market, further calling for the suspension of taxes levied on fuel as an alternative mechanism to shield the country from the high cost of the commodity.
KAM stated that the fuel supply system, and in particular the subsidy programme, is broken. The association argued that since the global oil prices have risen, the government's capacity to subsidise has been revealed as inadequate.
The association further noted that it was aware of the fiscal strain on government cash flows.
According to KAM, the lack of easily accessible fuel is a strain on operations and a poor advertisement of Kenya's ability to manage our national affairs.
KAM Chairman, Mucai Kunyiha, also addressed the supply of wheat flour in the market. He pointed out the impact the Russia-Ukraine conflict has had on the supply of grain in the country, attributing it to the blockade of Black Sea ports.
"India is a quick alternative source. We are calling upon the Kenya Plant Health Inspectorate Service (KEPHIS) to fast-track necessary approvals as a matter of national food security.
"From ongoing engagements with our counterparts at the Cereal Millers Association (CMA), it is clear that maize shortage will be our next crisis, with supplies at dangerously thin levels.
"This is a matter requiring the highest level of attention before it spins into further crisis. The Association is engaging the government to avert the looming crisis," Kunyiha stated.
KAM also addressed the crisis in the metal sector where it noted that the scrap metal industry had been disrupted by the ban announced by President Uhuru Kenyatta amid a rise in cases of vandalism of national infrastructure projects.
"I highlight the metal sector challenges here due to the scale and impact on adjacent sectors such as building and construction, automotive and energy among others. The complete ban on dealing with scrap metals is having a devastating impact on costs and supplies in the sector, and the sustainability of many companies that have literally shut down partially or completely," the statement read.
"Whilst we support the government measures to improve the operations of the sector, we are calling upon them to incrementally re-open the sector to licensed operators, in order to revive this important sector."
