KAM urges for Government support to enhance textile sector
18 May '05
2 min read
Kenya Association of Manufacturers (KAM) urged the Government to make out plan to end decline in the textile and apparel industries.
According to a statement released last week, the association informed that the textile and apparel industry has faced nearly 5000 job-loss since the ending of global textile quota in January, 2005. It is feared that the non co-operative approach of the key agencies like as Kenya Revenue Authority and Kenya Ports Authority (KPA) may result to more job losses.
The association has appealed the Kenya Government to impose EPZs preferential tariffs that KPA charges goods destined for foreign markets. "For this purpose, EPZs should be treated as territories that are external to Kenya," as per the statement.
Addressing Ministry of Trade, KAM spokesperson Betty Maina said KRA had denied imposing preferential rates agreed under the EPZ Act. “ This had resulted in an increase in the cost of doing business in Kenya,” she added.
The association pointed for a steady exchange rate at between Sh78-82 in support of exports.
Maina explained that the Government must provide financial support and should seek solution for the increased high cost of business. Kenya should have access from India, which provides incentives such as extended export credit guarantees, insurance and low tariff electricity to manufacturers of textile exports.
According to KAM, many apparel producers had passes through non-renewal of orders in 2005, it signals that the industry which recorded striking growth under the Africa Growth and Opportunity Act (Agoa) is at the verge of end.
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