Kenya's steel sector secures promise of tougher anti-dumping laws

NAIROBI: The Government has expressed commitment to address challenges faced by local steel manufacturers to enable them reduce the cost of products.

Industrialisation Cabinet Secretary Adan Mohamed said efforts being made to reform the business environment would help steel manufacturers increase production. He said the country is keen to protect local manufacturers by sealing loopholes that lead to an annual Sh36 billion trade deficit through imported steel.

Citing illicit imports and illegal dumping of steel in the country, Mr Mohamed said anti-counterfeit and standards agencies in collaboration with Kenya Revenue Authority have increased import inspection capacity at entry points to ensure only goods that meet quality standards are allowed through.

MADE IN KENYA

Mohamed, who spoke Wednesday during the launch of a Sh1.07 billion steel plant at the Maisha Mabati Ltd Ruiru, Kiambu County reiterated the Government's interest in encouraging purchase of 'Made in Kenya' products for local infrastructural projects.

"Kenyan mega projects currently require supply of steel and iron products, which sits well with the Government's commitment to enact the 'Buy Kenya, Build Kenya' policy into law to set local content requirements for all public procurement," he said.

For local manufacturers experiencing delays in work permits and getting VAT refunds, Mohamed said plans are on course on the platform of 'Ease of Doing Business' to fast-track processes for equipment set-up and maintenance specialists and repayment of large VAT refunds.

"As witnessed in the 2015/16 budget statement, Kenya is committed to improving its infrastructure through funding road maintenance and institutional reforms," he said, adding that the Standard Gauge Railway line, to be completed by 2017, will reduce freight costs substantially.