Chamber of Commerce delivers disturbing news as a result of Kenya Kwanza’s bad policies – Look! This should worry RUTO even more

Tuesday, May 21, 2024 - President William Ruto’s plan to grow the country’s Gross Domestic Product (GDP) growth rate to 7.2 per cent by 2027 may be in jeopardy as experts warn of manufacturers fleeing the country over regulation mishaps and harsh taxation policies.

Speaking during an interview, the Kenya National Chamber of Commerce and Industry's (KNCCI) Head of Policy Research & Advocacy, Kiplimo Kigen revealed that the organization's members had cautioned of negative effects on the larger economy if the government doesn't vet the policies it continues to introduce thoroughly.

Particularly referencing the Finance Bill,2024, Kiplimo lamented that the government has been introducing new taxes that affect the cost of raw materials and production in general.

Consequently, the increased costs in manufacturing are expected to trickle down to the consumers through increased costs of goods.

Further, the Chamber of Commerce has warned that investors are now increasingly considering neighbouring East African countries as better destinations to set up shop, denying Kenya much-needed opportunities.

“What we're hearing from our manufacturers at the Chamber of Commerce is that the discontentment is getting to a position where they're considering moving their production to neighbouring countries and then just supply back under the East African community tariff and sell their products to Kenya,” stated Kiplimo.

This comes even as an American business advisor, the Managing Director of Exigent Risk Advisory, Declan Galvin expressed almost similar concerns.

Galvin stated that the country has been creating new regulations rapidly without thoroughly scrutinizing the existing environment and without retiring existing policies.

The Kenyan DAILY POST