Manufacturers association calls on govt to widen tax bracket

Written By: Stanley Wabomba/Ian Chepkuto

Manufacturers association calls on govt to widen tax bracket

The Kenya Association of Manufacturers (KAM) is calling on the government to widen the tax bracket to relief them from heavy taxation. 

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The Associations CEO Phyllis Wakiaga says the manufacturing sector is currently experiencing a slowed growth due to high cost of production that is mainly driven by heavy taxation and increasing cost of electricity.

Despite the manufacturing sector contributing 7.5 per cent to the country’s total GDP, the sector accounts for 20 per cent of the total tax revenue.

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This according to players in the sector is as a result of high taxation by the government, that is slow on widening the tax bracket to rope in more tax payers

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KAM urged the government to increase tax cuts to manufacturers and clear all the remaining pending bills as the sector is facing a liquidity crunch.

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The high taxation coupled with influx of counterfeit products and high energy costs is driving many manufacturers out of business to mitigate against the raising energy cost.

The association farther says it is carrying out an energy audit on all manufacturing companies in a view to increase investments on integrated green energy solutions.

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The sector is urging more financial institutions to finance such ventures to enhance clean production.

The Kenya Association of Manufacturers is also encouraging investments in carbon credit trading schemes to lower carbon emissions.

The county governments have been encouraged to start industrial parks and intensify the manufacturing sector at county level to boost manufacturing sector in the country.


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