NAIVASHA, Kenya — In a recent call to action, the National Assembly Committee on Trade, Industry and Cooperatives has urged the Kenyan government to introduce fiscal incentives aimed at fostering investment and revitalizing the country’s industrial landscape.
According to Kenya News Agency, the strategic implementation of fiscal incentives is crucial for Kenya to retain and attract investment, particularly in light of the recent business downturns attributed to high production costs. Gakuya highlighted the competitive edge enjoyed by neighboring countries like Uganda, Tanzania, and Ethiopia, which have managed to lure businesses away from Kenya due to their lower industrial power tariffs and labor costs.
The committee emphasized the need for Kenya to adopt a new strategy, offering competitive incentives to safeguard local industries and draw foreign investment, thereby bolstering the manufacturing sector. Such measures, Gakuya explained, would not only decrease the national import bill but also enhance revenue generation and create employment opportunities, particularly for the youth.
During discussions in Naivasha with representatives from the State Department for Industrialization, Gakuya expressed concern over the decline of Kenya’s manufacturing sector, once considered a beacon of industrial success in the region. To counteract this downturn, he proposed increased funding for the trade and industry sector and strategic enhancements of pivotal agencies like the Kenya Numerical Machining Complex and the Kenya Industrial Research Development Institute (KIRDI).
Gakuya suggested that partnerships with the private sector, particularly in ventures like spare part production, could revitalize essential institutions like the Numerical Machining Complex. Similarly, he recognized KIRDI’s vital role in uplifting Small, Micro, and Medium Enterprises (SMMEs), positioning them as instrumental in Kenya’s industrial resurgence.
Industrialization Permanent Secretary Dr. Juma Mukhwana outlined government plans to revise legal and policy frameworks to rejuvenate the manufacturing sector. He highlighted the establishment of special economic zones in locations such as Naivasha, which are intended to attract significant industrial activity through incentives like reduced power tariffs.
Furthermore, Dr. Mukhwana pointed to the government’s commitment to the ‘Buy Kenya, Build Kenya’ policy, which mandates state departments to prioritize local products, thereby supporting domestic industries. He also advocated for enhanced funding to equip key agencies with advanced technologies and skills aligned with current market demands, reinforcing Kenya’s position as a formidable industrial force regionally and globally.