The Kenya Association of Manufacturers (KAM) has today launched the Manufacturing Priority Agenda (MPA) 2020. The MPA highlights immediate action plans to establish a competitive manufacturing-led economy for job and wealth creation.
KAM Chair, Mr Sachen Gudka observed that the country needs to urgently rethink its economic trajectory by making a swift about-turn to prevent further decline and stimulate growth.
“The country needs to create a space that provides the much-needed stimulus for industry to grow, become competitive and increase productivity. The 2020 MPA themed “Establishing a competitive manufacturing-led economy for job and wealth creation” is a how-to guide on how this space can be created, ” said Mr Sachen.
Some of the measures the Association is proposing, this year, to establish a competitive manufacturing-led economy include;
Enabling stability of the macroeconomic environment. The National Treasury should sustain the ongoing fiscal consolidation measures and ensure that the fiscal deficit is reduced to 3% of GDP in the 2022/23 financial year.
Enhancing the competitiveness of locally manufactured goods. For example by reviewing SGR Freight tariff rates to make them competitive. The sector is currently at a 12.8% cost disadvantage on most goods compared to our neighbouring countries. Last-mile costs need to be reviewed as they are a key factor in the increase of overall operational costs for businesses.
Developing a pro-industry policy and institutional framework. The design of coherent and cohesive policies is key, between Government departments and also between the National Government and Counties. This will enhance effective and transparent policy execution
Enhancing market access. Kenya needs to push for the finalization of the amendments on the NTB Act, advocate for ratification of TFTA by member states and fast track the finalization of an optimal EAC CET structure that will promote value addition and industrialization.