Exporters decry high cost of production, call for reduction of tariffs to boost trade

A cross-section of Kenyan manufacturers and exporters have decried the high cost of production which they say drains their earnings.

The traders now want the government to introduce incentives including lowering tariffs on most of the export products whose cost of production has been soaring.

They spoke during the ‘Exporters Round Table’ talks attended by industrialists and business people from Thika, Kiambu County and hosted by the Kenya Export Promotion and Branding Agency (Keproba).

David Kimani of Kevian Kenya which makes and exports fruit juices and other food products talked of high electricity tariffs and other levies which he said must be reduced for manufacturers to stay afloat.

He also ed that agriculture-based companies are also adversely affected by duty on imported machinery for processing their products, despite supporting farmers through provision of seed and other inputs.

At the same time, Kimani expressed concerns over the declining land for agricultural use within Kiambu and the adjacent region as a result of real estate growth.

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“All the farming land around Thika and the neighbourhood is fast disappearing and all we see around are buildings coming up. Whereas housing is good, people also need to grow food,” said the manufacturer.

Srinivas Garikipatis, head of exports at Mjengo Ltd who are manufacturers of Nuvita biscuits, concurred and added that Kenyan manufacturers of these finished products are getting stiff but unfair competition from countries like India and China whose products are low priced.

“All growing economies around the world are giving their manufacturers incentives to produce more. Kenya needs to go that route,” said Srinivas adding that here they are paying upto 30 percent in local tariffs.

The exporters, he added, should be allowed to find markets within the African continent to avoid incurring losses through international conflicts like the war in the Middle East and the Russia-Ukraine crisis.

The Keproba Chief Executive Floice Mukabana said the agency is working with exporters in a bid to diversify the export market and find ways of sustaining Kenya’s high quality products in the international market.

She said the collaboration will also address the challenges faced by players and come up with solutions to the various bottlenecks.

By John Kamau

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