Trade Cabinet Secretary Moses Kuria on Tuesday, January 24, confirmed plans by the government to impose higher levies on the importation of steel, paper, and furniture products.
Speaking to the media, the CS stated that the move would enable the state to create more job opportunities, attract investors and collect more revenue by discouraging the importation of goods that can be manufactured locally.
In his address, Kuria affirmed that the manufacturers would not be allowed to apply for exceptions to the export and investment promotion levy.
However, he added that countries within the East Africa Community( EAC) would be exempted from the levy as a measure of goodwill and continued support between the member states.
“Every time we import products for which we have the local capacity, it increases our unemployment rate.
“My first responsibility is to protect Kenyan jobs and businesses and I believe that it is only fair that I do what is in the interest of the Kenyan economy,” Kuria stated.
Additionally, he stated that the proceeds from the levy collected would be channeled toward other government projects that will boost the economy.
“The levy will be used in areas where we feel we need to work on like green energy, water provision, and creating the digital economy and promotion of exports,” Kuria added.
Moreover, the CS stated that the government had budgeted Ksh46 million for the promotion of exports in 2023, a move that would allow the country to establish commercial offices in 50 countries across the world.
“We are happy because, through this, we can open commercial offices all over the world, independent of our normal embassy system.
“We will also have open export warehouses in those 50 countries so that it is easy to export products made in Kenya abroad,” Kuria elaborated.
The CS lamented over the increased pressure on the Kenyan shilling explaining that because importation is done in dollars, it led to a decrease in the value of the local currency.
“From December 2022 to January 2023, the importation of steel products spiked to worth up to products worth Ksh18 billion yet we can make these products in the country,” Kuria stated.
