Anthony Mwangi, the CEO of the Kenya Association of Manufacturers (KAM), voiced worries on Monday 27, May 2024, about the potential departure of foreign investors from Kenyan market, which could lead to job cut.

The CEO, during an interview with Hot 96, highlighted concerns that the proposed Finance Bill, 2024, could jeopardize opportunities and further burden Kenya’s already challenged economy.

“If you look at the export promotion and investment levy cumulatively, what the government has collected is what it used to collect from one company in a month. So you destroy a sector to collect peanuts,” he stated.

The CEO stressed that the new taxes not only impact companies but also trickle down to consumers, who end up paying higher prices.

Mwangi also mentioned that the new taxes will raise manufacturing costs, potentially driving companies out of Kenya, leading to increased imports.

He highlighted several major companies that exited the Kenyan market recently, causing job losses and higher import expenses for the country.

“When you come here as an investor you are taken in rounds with some officials asking for some token. These global investors have no appetite for some of these investment destinations that operate like that,” he opined.

Moreover, Mwangi mentioned that the new direction and proposal were impacting job creation in sectors like textiles and apparel.

He emphasized that the focus should not solely be on the taxes like those on bread but rather on how the bill will impact production and job opportunities.

“We know where the jobs are, we know we can move 17,000 jobs to 100,000 in leather and footwear. We know how to increase jobs in the apparel and textile industry from 50,000 to about 300,000. Where is this in the bill to create these jobs, inviting foreign and local investors,” the CEO added.

He pointed out that enhancing the manufacturing sector in Kenya is a positive move but should be phased in gradually to prevent overburdening Kenyans, especially those in the informal sector who are at high risk of job loss.

Mwangi suggested that the government should focus on taxing the final products of goods made in Kenya rather than taxing the raw materials, which would increase the prices of the products.

“We are putting ourselves outside the market because we do not have a strategy for production, but we do not see it because economies die slowly,” he added.