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The Kenya Association of Manufacturers (KAM) has raised objections to plans to impose a two per cent royalty fee and a one per cent Mineral Development Levy on exported clinker, arguing that the move could penalise companies that have spent billions of shillings expanding local production.
The concerns come as demand for LPG continues to grow in Kenya, driven partly by efforts to promote cleaner cooking
The Kenya Bankers Association (KBA), which led a session on domestic borrowing, credit and financial sector stability, said the increase in government borrowing was changing how banks allocate their funds.
With the latest position, the total tax burden on imported mobile phones is expected to ease only slightly, dropping to about 50 per cent from the current 54.5 per cent, rather than the sharp reduction that had been anticipated.
In its submissions to the Senate, KNCCI said that while it supports efforts aimed at protecting minors from tobacco and nicotine products, some of the proposed measures risk being too strict and could negatively affect businesses, especially micro, small and medium enterprises.
The report, developed in partnership with the Kenya Water Institute and the Confederation of Danish Industry, identifies a range of challenges holding back progress.
The proposed legislation aims to alter the VAT classification of raw materials and inputs used in the production of pharmaceuticals, shifting them from a "zero-rated" to an "exempt" status.