The Kenya Association of Manufacturers (KAM) has
launched an online directory of locally manufactured goods, in the wake of the
confirmation of covid-19 coronavirus cases in the country.
The online portal is a directory of locally
manufactured products aimed at forestalling disruptions in the market. It will
provide information on readily available products and services in the
manufacturing sector to supplement imported finished goods as nations restrict
the movement of people and goods.
The portal also seeks to support manufacturers
access intermediate goods available locally, especially SMEs who may be hardest
hit in case of stock-outs.
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KAM Chief Executive, Phyllis Wakiaga notes that the
directory offers quick and easy access to essential information and features of
local manufacturers’ products and services.
“This is an initiative by the manufacturing sector
to make sure that consumers are aware of the products available during this
difficult time. It consolidates all the members under the Association and their
products. It contains robust information for customers, investors, partners and
the media,” said Wakiaga.
The directory will be updated regularly with
new products and services in the market. The public can explore the website and
sign up for direct emails from the platform that will notify them on consumer
news and new products by our members.
According to a KEPSA survey, the worst-hit sectors
are those in arts, entertainment and recreation, ICT, Manufacturing, Mining and
Quarrying and Private Security at 100%.
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Real estate is the least affected at 40% while
other sectors like tourism, agriculture and transport have largely been
affected.
During the launch of the survey, KEPSA said that
financial losses had been largely minimal with 82% of businesses reporting
losses of less than Sh5 million and 61% reporting losses of less than Sh1
million.
This could have changed with the country
registering 25 positive case by Tuesday, March 24, 2020.
On the expected impact on Kenya and EAC region,
KEPSA notes that in the first two months of 2020 Kenya’s imports from China
declined by 36.6%. Similarly, exports to China have been affected due to
reduced demand. Kenya exports avocadoes, tea, coffee, and other products to the
Asian nation.
According
to Cytonn, the coronavirus could reduce
Kenya’s GDP growth to a range of 4.3% to 5.2% for the year 2020 depending on
the severity of the outbreak and economic implications for Kenya.
We believe the Kenyan Government can borrow a leaf
from the other governments and possibly:
- Grant tax breaks to companies seeking to increase their capacity to produce import substitute goods, which could even mean zero-rating VAT for the next 3-months.
- Release VAT refunds to assist businesses with managing their cash flows.
- Encourage banks to give concessionary loans at low rates to facilitate businesses, and as well provide moratoriums on loans that are due.
- Announce and provide for a Business Stabilization Fund to cushion the impact of the coronavirus, especially for Small & Medium Enterprises (SME’s).
- Consider reducing corporate tax for industries that have been highly affected by the virus such as the aviation industry, or waiving corporate tax for a 3-month period as well as a reduction in payroll tax for the next three months for the low-income bracket workers, and,
- Strengthen the local supply chain for traders to be able to access import substitute goods.
Read >> In Coronavirus Pandemic, a Golden Opportunity for Kenyans
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