KAM WARNS FINANCE BILL COULD CRIPPLE LOCAL MANUFACTURING

The Kenya Association of Manufacturers (KAM) has raised concerns over the proposed Finance Bill, warning it could collapse the local manufacturing sector. Key among their concerns is the VAT exemption on packaging bags used for tea and coffee, which would make input VAT non-recoverable — increasing production costs for local manufacturers. KAM argues this move unfairly favors importers, who pay just 4.5% in taxes on finished packaging products, while local producers face over 65% in taxes on raw materials.