NAIROBI (Xinhua) --
Kenya is considering putting in place a raft of
tax incentives to spur growth of information and communication
technology (ICT) manufacturers, officials said on Wednesday.
principal secretary in the ministry of ICT, told a media
briefing in Nairobi that Kenya is prioritizing the development
of the ICT industry because it is an enabler for all sectors of
“We are currently in
talks with the ministry of industrialization and the national
Treasury to reduce taxes for firms who set up ICT-related
manufacturing plants in the country,” Ochieng said during a CEO
forum for companies implementing President Uhuru Kenyatta’s Big
Four Agenda on affordable housing, universal health care, food
security, and manufacturing.
He said two local
companies are assembling laptops for use for the countryh’s
digital literacy project.
The government is in
discussion with the two computer assembling firms to support
them expand their operations so that Kenya can become an ICT
regional manufacturing hub, Ochieng added.
He said Kenya is
planning to attract global ICT manufacturing firms to move their
operations to Kenya to take advantage of the large pool of
The value of the ICT
sector in 2017 was approximately 3.45 billion dollars, making
its contribution to the gross domestic product (GDP) to less
than 5 percent of the economy’s output, Ochieng said.
A robust ICT
industry will help to expand the digital economy, he said.
industrialists mull taskforce to advise on tax policies
NAIROBI (Xinhua) --
Kenyan industrialists have called for an
industry-led taskforce to advise on people-driven public
expenditure, debt and taxation policies, including industrial
measures, to drive competitiveness for the manufacturing sector.
Association of Manufacturers (KAM), which held a public forum in
Nairobi, also called for the need to develop clear-cut
strategies to provide linkages between national and county
government budgets for better synergies.
KAM vice chairman
Mucai Kunyiha said it is crucial for the government to develop
policies aimed at driving the competitiveness of industry at
both local and global markets.
“The new tax
measures do not sync with the spirit of the Big 4 Agenda. An
increase in the cost of doing business renders the local
environment hostile to investments and derails any growth
prospects of existing projects and planned expansions,” he said
in a joint statement issued on Wednesday.
The move came after
the Treasury introduced new tax measures aimed at increasing its
revenue collection, including an 8 percent VAT on fuel, excise
duty on fees charged for money transfer services, excise tax on
sugar confectionery, and anti-adulteration levy on all
Kunyiha said it is
important that the government involves all relevant stakeholders
in the development of policies that will have an impact on the
The forum, which
also brought together tax experts and public policy influencers,
also reviewed the strengths and weaknesses in the Finance Act
2018 and Kenya’s proposal to the East African Community
reflected in the EAC Common External Tariff of the Community to
counties are an integral part of the public financial system in
Kenya and important agents for creating a broad-based economy to
reduce economic inequality in Kenya.
“They need support
to develop their nascent public financial management systems.
The debate on the state of public finance and the economy has
not adequately included the role of the counties,” he added.