Trade Cabinet Secretary nominee Lee Kinyanjui has outlined plans to address the challenges faced by local investors and companies exiting Kenya. During his vetting on Tuesday, he stated that President William Ruto had already begun efforts to understand the reasons behind the exit of businesses. Kinyanjui assured the committee that he would take swift action to tackle the issue if confirmed.

Kinyanjui emphasized the importance of investigating the matter and engaging with companies that have not completely exited to explore ways to reverse the trend. He pointed to the closure of local businesses, such as Mobius, a vehicle manufacturer, which had represented a source of pride for Kenyans. The closure of such companies was described as troubling, given their potential to contribute to national pride.

The nominee highlighted that unpredictable tax policies and fluctuating duties were significant challenges for investors. He advocated for a stable tax regime, proposing a minimum five-year period of certainty for businesses, especially in sectors like livestock and food processing. This, he argued, would allow investors to plan and invest with greater stability.

Kinyanjui also stressed the need to prioritize local investors, noting that local businesses often struggled to secure meetings with government officials, while foreign investors were treated with greater urgency. He emphasized that local businesses should be prioritized, as even foreign investors rely on local references.

Additionally, Kinyanjui called for better support from banks for small businesses, pointing out that many were struggling due to banks’ preference for investing in Treasury bonds instead of lending to growing enterprises. Lastly, he warned that open negotiations with economic giants like the U.S. could threaten local industries if not carefully managed.

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