As part of its ongoing commitment to engaging directly with members and addressing real-time challenges in the business environment, KNCCI President Dr. Erick Rutto, accompanied by KNCCI National Director Mr. Ken Onditi, today conducted a courtesy visit to Nestel Kenya, a regional manufacturing firm located in Nairobi’s Industrial Area. They were warmly received by Managing Director Kretesh Rajkoomar, as part of the Chamber’s structured member outreach initiative.
These visits are instrumental in deepening the Chamber’s understanding of sector-specific concerns, informing policy advocacy, and strengthening member value. During the visit, the team toured the company’s facility and observed ongoing modernization and expansion efforts—part of a wider shift toward increased manufacturing capacity within the African continent. Notably, Nestel Kenya plans to scale up production of its key brands across countries such as Kenya, Uganda, Zimbabwe, South Africa, and Egypt moving away from imports from Brazil, Malasyia and Portugal.
In a candid discussion, several pressing issues affecting both Nestel Kenya and the broader manufacturing sector were raised. These included:
- An unpredictable tax environment, with significant policy shifts occurring every four years, creating uncertainty for investors.
- Limited ability to fully benefit from key trade agreements such as the AfCFTA, EU-EPA, UK-FTA, and AGOA—largely due to double taxation challenges and policy misalignment.
- High production costs, particularly from electricity, labor, and insufficient infrastructure.
- The burden of multiple business permits and licenses, which complicates operations and increases compliance costs.
- Numerous government-imposed levies on imported raw materials and finished goods.
- A lack of adequate linkages, training, and capacity-building initiatives for industry players.
In response, the Chamber leadership reaffirmed its role as a strong voice for the private sector. Dr. Rutto committed to:
- Advocating for adherence to the National Tax Policy, especially the need for stability and predictability in the tax regime.
- Promoting tax-free exports and enhanced trade facilitation for exporters.
- Leading negotiations on new trade agreements, such as the proposed Kenya–Switzerland Free Trade Area, to expand market access for local manufacturers.
- Pushing for policy reforms aimed at streamlining and consolidating business permits and licenses to reduce the cost of doing business.
- Lobbying for the review of excessive levies imposed by multiple government agencies, particularly ahead of the upcoming Devolution Conference, where these matters will be at the forefront of policy discussions.
Chamber member visits like this are crucial for ensuring that KNCCI remains aligned with the evolving needs of its members, while also shaping a more conducive business environment for sustainable industrial growth across Kenya and beyond.
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