Government agencies will soon be required to procure a bigger chunk of their goods from local manufacturers, a government bid to empower local businesses.
According to Trade Principal Secretary Juma Mukhwana, the Business Amendments Law Bill that is currently under review will make it a legal requirement for state agencies to procure 40 per cent of the locally produced goods.
”There is a requirement for government agencies to procure 40% of locally manufactured goods. Today, I wish to highlight that through the Business Amendments Law Bill, we are making this a legal requirement,’’ Mukhwana stated.
Should the amendments sail through, government agencies and ministries will be compelled to revise the procurement policies that have in the past been blamed for favouring imported products to locally manufactured goods.
Industry PS Dr Julius Mukhwana during a meeting between the Ministry of Trade and the private sector on February 13, 2023.
Dr Julius Mukhwana
This has consequently denied local manufacturers access to fair market share from government agencies.
The government has also been particularly keen on reducing imports by Kenya, with official statistics from the Kenya National Bureau of Statistics showing that the total import value decreased from Ksh226.4 billion to Ksh208.2 billion.
This comes as the government seems to be keen on introducing some of the clauses from the contentious Finance Bill of 2024 that had proposed key levy proposals on imports, in a bid to encourage the consumption of locally produced goods.
Additionally, the Cabinet Secretary for Trade Salim Mvurya also challenged Kenyans on Tuesday to embrace locally manufactured goods, to help local manufacturers. He was speaking during an engagement with the Kenya Association of Manufacturers in Nairobi.
Mvurya revealed that the government will come up with more policies to encourage local product manufacturing.
“By empowering local manufacturers and the entire value chain, the government is committed to enabling policies that foster quality product innovation.,” Mvurya stated.
”This will ensure our products meet international standards, expanding market access locally, regionally and globally. Ultimately, the Changamka Festival is a testament to how profiling and supporting local manufacturing plays a huge role in creating job opportunities and driving economic prosperity for Kenya,” he added.
Mining CS Salim Mvurya at the office of Embu Governor on January 24, 2024.
Photo
Cecily Mbarire
