Mathew Ndung’u @PeopleDailyKe
Kenya Revenue Authority (KRA) has released Sh14.7 billion in Value Added Tax (VAT) refunds to various firms to enable them to improve cash flow and put them back on track.
President Uhuru Kenyatta said as of yesterday morning the money had been refunded to affected businesses while another Sh24.6 billion is in the process of verification by the taxman as government moves to address the huge amounts of accumulated VAT refunds.
In addition, he said, the government has proposed, as part of the Finance Bill 2019, the reduction of VAT withholding tax from six to two per cent.
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Industrial park
Uhuru was speaking yesterday when he opened Bidco Industrial Park that will host the company’s beverage and food processing factory in Ruiru, Kiambu county. Those who attended included Deputy President William Ruto and former Prime Minister Raila Odinga.
The Head of State said the government will continue growing the manufacturing sector by initiating more business-friendly policies designed to reduce costs and boost its development.
He said last month, the government released in excess of Sh50 billion towards addressing pending payments that have accumulated at both national and county government levels.
Some of the payments, the President added, went to local manufacturers and suppliers, most of whom are small and medium enterprises (SMEs) that form the bedrock of the economy.
Uhuru said the government has also addressed various other impediments that have hindering the growth of local manufacturing sector such as counterfeits, dumping, poor taxation policies, energy costs and ports and transport logistics delays.
Among other concerns, he said the government is dealing with, are corruption, multiplicity of regulatory fees and levies and market access for locally-made goods.
The President said the government has so far reduced the number of regulators operating in the ports and inland container depots which has reduced the time for clearance of imported goods.
He said extension of Standard Gauge Railway (SGR) to Naivasha, which will be completed in months, and revitalisation of Kisumu port will ease movement of cargo both within the country and the region.
Uhuru also revealed that the government has invested heavily in the diversification of the national energy mix, gaining immensely from renewable energy such as wind, geothermal and solar all of which have lower tariffs than thermal energy.
Energy cost
President Uhuru said the 30 per cent reduction of energy cost for manufacturers will be extended to the textile and steel mill sub-sectors by close of the month.
“As a government we remain committed to do even more to improve the investment climate. Our focus is on implementing more business-friendly policies designed to reduce the manufacturing cost in Kenya and thereby enhance our manufacturing sector,” he said.
Uhuru also ordered for a halt in the purchase of government ICT equipment and importation of vehicles from abroad when there are companies in Kenya which can do the same.
He said all government vehicles will be assembled at Kenya Vehicle Manufacturers in Thika to ensure that youths get job opportunities.
“We have also said that all government computers will be done in Eldoret and in Juja and in April next year, we will open another company that will be making televisions and mobile phones,” said the President.
“We must develop a culture of consuming our own and this is the only way to eradicate poverty in the country,” Uhuru added. To improve market access for locally manufactured products, Uhuru said some local products will receive exclusive preference through purchase by all ministries and State departments.
