UNISAME URGES KENYA TO ADOPT FRIENDLY TRADE POLICIES

The Union of Small and Medium Enterprises (UNISAME) has urged the Kenyan government to reconsider its decision to increase import duty on all varieties of rice and pointed out that it will affect the rice business in both the buying and the selling countries and urged the Kenyan ministry of commerce to give special consideration for rice being a food item and since business is conducted by mostly the SME sector in both the countries.

President UNISAME Zulfikar Thaver said the import duty on rice in Kenya which was 35% on invoice value or USD 100 per metric ton for almost last 5 years and whenever the government increased it the decision was always reversed. This time the import duty with effect from 1st July 2014 has been fixed at 35% or USD 200 whichever is higher.

He said this will reduce the buying power of the importers in Kenya and accordingly affect the SME rice exporters to Kenya as their exports will reduce.

Thaver urged the Ministry of Commerce (MINCOM) Pakistan to take up the matter with its Kenyan counterpart and request them to accept the proposal of the rice exporters not to increase the import duty to enable the SMEs on both sides to carry on their business smoothly.

He pointed out that Pakistan imports substantial quantities of Kenyan tea and has not increased the import duty on Kenyan tea considering the fact that Kenya imports rice regularly from Pakistan and moreover all the landlocked countries neighbouring Kenya are also facilitated by Kenya for transit goods.

UNISAME has urged the Ministry of Commerce Kenya to adopt friendly trade policies for the SME sector in Kenya and indirectly in Pakistan and promote business rather than disturb regular business which is a source of income for the SME sector in both the countries.

The Union is aware of the fact that the Kenyan government has a soft corner for its SMEs and has an SME promotion and development organization for the SMEs and the Kenyan government offers incentives and facilitates the SME sector by encouraging and supporting the sector. The world body has also recognized the efforts of the Kenyan government in this direction and has expressed its views that the Kenyan government is doing remarkable work for the sector on scientific lines.

UNISAME feels this step of increasing import duty will discourage the rice sector which involves the SMEs and should be re-examined to make it reasonable.

Posted in: Press Releases