- Kenyan manufacturers lament the rising cost of production
- The high cost of power and taxes add to the increasing costs
- Lament the collapse of industries
Kenyan manufacturers have decried the rising cost of electricity tariffs and the impact on the cost of production. This comes as the Kenya Association of Manufacturers and KPMG issued a report on the impact of the COVID-19 pandemic on the manufacturing sector between May 2020 and June 2021
“The pandemic has had adverse effects on manufacturers on business operations with many manufacturers experiencing: reduced demand, depressed production capacity, cash flow constraints, logistics challenges and in some cases, downsized workforce.”, the report says.
“While the factors increasing costs of manufacturing are largely external, the Government can alleviate the pain by reducing the cost of electricity to Ksh9/KwH for manufacturers.” the report stated. “Further, the Government should avoid any new tax or increase in existing taxes as this would increase costs and reduced profitability and has the potential to slow recovery of businesses, and even lead to their collapse.”.
The Kenya Association of Manufacturers seeks the support of the Kenyan government in addressing these challenges in the manufacturing sector.