Investment, Trade and Industry CS Salim Mvurya with Trade PS Alfred K’Ombudo, Industry PS Dr.Juma Mukhwana Investment PS Abubakar Hassan Abubakar during the launching of public participation
The Ministry of Investments, Trade, and Industry is embarking on an extensive public consultation process aimed at driving legislative and policy reforms to boost consumer protection, investments, trade, and manufacturing.
The initiative, announced by Investment, Trade and Industry Cabinet Secretary Salim Mvurya, is an effort to revitalize Kenya’s business environment and address gaps in the current economic framework.
In a press conference held on Thursday, CS Mvurya outlined the Ministry’s commitment to engaging a broad spectrum of stakeholders, including public entities, traders, manufacturers, investors, experts, the private sector, civil society, professional bodies, academia, and religious groups.
“The rigorous reforms we are proposing are designed to advance consumer protection and enhance the sectors of investments, trade, and manufacturing,” CS Mvurya stated. He emphasized the importance of including diverse perspectives to craft policies that effectively address the needs of all stakeholders.
The Ministry plans to integrate this feedback into comprehensive legislative and policy reforms aligned with the Kenya Kwanza Manifesto.
Investment, Trade and Industry CS Salim Mvurya with Trade PS Alfred K’Ombudo, Industry PS Dr. Juma Mukhwana, Investment PS Abubakar Hassan Abubakar and officials from KEPSA, KNCCI and KAM during the launching of public participation
One key focus of the reforms is the manufacturing sector, which has seen a troubling decline in its contribution to Kenya’s GDP—from 15 percent a decade ago to 7.6 percent today. This decline highlights the urgent need for targeted reforms to invigorate the sector. “We are promoting our potential, but it is not translating into actual market entry. Engaging with industry players who work in the business daily will help us create a more enabling business environment and ultimately improve the country’s GDP,” Mvurya explained.
As part of the reform process, the Ministry is considering significant changes to the tax regime and incentives for the manufacturing sector. CS Mvurya noted that the government is keen on harmonizing taxes and addressing pending bills to make the business environment more conducive. “We need to review and harmonize the tax regime to eliminate distortions and establish a stable tax structure,” he said. The submission of views on taxes and incentives for the new manufacturing policy is a critical component of the public consultation process.
The public’s feedback will be instrumental in informing technical teams as they work on the reforms. This input is expected to help streamline incentives, improve consumer protection, ensure fair trade, and enhance the overall investment climate. “Our goal is to attract, incentivize, and de-risk private investments across all sectors of the economy,” CS Mvurya added.
Industry stakeholders have welcomed the Ministry’s initiative, expressing their readiness to contribute valuable insights. Private sector players, including representatives from the Kenya Private Sector Alliance (KEPSA), Kenya Association of Manufacturers (KAM), and the Kenya National Chamber of Commerce and Industry (KNCCI), have committed to providing feedback that will guide the sustainability of businesses.
The Ministry’s efforts are being led by Industry Principal Secretary Dr. Juma Mukhwana, who will oversee the public participation process. The consultation will be a critical step in addressing existing challenges and ensuring that the reforms are well-informed and effective.
The deadline for submitting proposals and feedback is set for September 27, 2024. Stakeholders are encouraged to participate through both physical meetings and online platforms to ensure that their voices are heard in shaping the future of Kenya’s economic landscape.
This proactive approach by the Ministry of Investments, Trade, and Industry underscores the government’s dedication to fostering a more dynamic and resilient economy, poised to better support manufacturing and overall economic growth.