CS Kinyanjui, PS Mukhwana Hold Consultative Meeting with KAM to Address Finance Act 2026 Industrial Concerns.
The Cabinet Secretary for MITI Hon. Lee Kinyanjui accompanied by the Principal Secretary for Industry, Dr. Juma Mukhwana today held a meeting with a delegation from the Kenya Association of Manufacturers (KAM) to deliberate on the industrial implications of the Finance Act 2026
The meeting, led by KAM Chief Executive Officer Mr. Tobias Alando served as a critical platform for the private sector to present its Issue Matrix a comprehensive document outlining specific fiscal challenges emerging from the new budget cycle. The primary focus of the discussions was the post-budget landscape and the potential impact of revised excise duties on the cost of production and the overall competitiveness of Kenya’s manufacturing sector. Addressing the KAM Issue Matrix,the KAM delegation raised significant concerns regarding several new and increased levies that affect essential industrial inputs. Key among the issues discussed were:
Timber & Wood Implementation excise duty on imported wood panels, Industrial Inputs Increased excise duties on industrial sugar imported, printing ink and resins, Paper & Packaging, new excise duty applications on kraft paper, Glass Industry and the removal of excise duty exemptions on float glass originating from the East African Community (EAC),
Environment & Trade Concerns over Extended Producer Responsibility (EPR) import fees and perceived discriminatory taxes on specific goods.
Hon. Lee Kinyanjui reaffirmed the Government’s unwavering commitment to a long-term solution to economic resilience that lies in the establishment of robust local manufacturing industries that reduce reliance on imported finished goods.
The Cabinet Secretary further proposed a multi-agency consultative framework to review the current excise regime. He advocated for a policy shift where excise duties are primarily targeted at final products rather than raw materials, thereby protecting the manufacturing value chain from prohibitive costs.
Towards Industrial Efficiency
The Ministry of Investments, Trade, and Industry (MITI) pledged to work closely with relevant regulatory bodies to streamline the process of exemptions and ensure that the Finance Act 2026 aligns with the national goal of industrialization. Both parties agreed on the necessity of enhancing efficiency within the sector to drive job creation and economic growth.
The meeting concluded with a commitment to hold further technical sessions involving the National Treasury and the Kenya Revenue Authority (KRA) to harmonize the tax environment for a more predictable and investor-friendly industrial landscape.
Also present at the meeting were Hitesh Mediratta vice chair KAM Board, Mr. Ooko from Cabinet Secretary's Office and Mr. Gideon Oele Director of Industries.