Salim Mvurya, the Cabinet Secretary nominee for Investments, Trade, and Industry, has pledged to protect local manufacturers from unfair trade practices that have driven many out of business.
Addressing the lack of clear legislation as the main challenge in creating a neutral business environment, Mvurya emphasized the importance of introducing comprehensive laws to Parliament. “Currently, there is a gap in legislation to protect local investors. One of my priorities will be to introduce the Trade Development Bill and Trade Development Policy to clearly differentiate between foreign and local investors,” Mvurya stated.
He highlighted past issues, such as a case involving China, and stressed the need to review and update trade policies and bills to safeguard micro, small, and medium enterprises (MSMEs). “We must ensure our policies offer protection for MSMEs,” he added.
Mvurya, who previously served as the CS for Mining and Blue Economy, also advocated for revising the Investment Act of 2004. This revision aims to protect local manufacturers from foreign investors with significant capital, aligning with Kenya’s manufacturing goals.
He acknowledged the sector’s challenges, such as high power costs, which hinder the growth of manufacturing. “We have a target to increase manufacturing to 15% by 2027 and 20% by 2030, but there are several obstacles, including the cost of power. This is something we can address with our colleagues in the Ministry of Energy by reviewing tariffs to encourage manufacturing,” explained Mvurya, who also served as Governor of Kwale County from 2013 to 2022.
Mvurya committed to creating a conducive environment for investors, emphasizing the need for a streamlined process. “Manufacturers want a plug-and-play arrangement. They should be able to come to the country, obtain licenses quickly, and start operations promptly,” he noted.
Additionally, Mvurya promised to tackle tax evasion schemes among manufacturers in the country’s Special Economic Zones (SEZs). “As Minister of Trade, I will ensure that all manufacturers pay their taxes. We will enforce compliance through the relevant institutions in the ministry,” he said, addressing concerns raised by Majority Leader Kimani Ichung’wah about tax evasion in SEZs.
“We cannot give them all the advantages and then allow them to evade taxes,” Mvurya reiterated.
