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{
    "id": 1254208,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1254208/?format=api",
    "text_counter": 159,
    "type": "speech",
    "speaker_name": "Prof. Njuguna Ndung’u",
    "speaker_title": "The Cabinet Secretary, National Treasury and Economic Planning",
    "speaker": null,
    "content": "Despite rice and wheat being among the staple food items in our countries, Kenya's production of those food items does not meet domestic demand. To meet domestic demand, Kenya will import rice at a rate of 35 per cent instead of 75 per cent under the EAC Common External Tariff. Further, to ensure that there is enough wheat to meet local demand while at the same time protecting wheat farmers from unfair competition from imported wheat, Kenya will import wheat under the EAC Duty Remission Scheme at 10 per cent instead of 35 per cent. The importation of wheat will be undertaken upon the recommendation by the Ministry of Agriculture and Livestock Development, which will ensure that wheat millers, as a priority, purchase local wheat before they are allowed to import. In order to support local automotive assembly in the region, the EAC partner states agreed to continue importing raw materials to manufacture parts used in the assembly of motor vehicles, especially leaf springs, radiators and wiring harnesses under duty remission. In addition, the region agreed to extend the importation of Completely Knocked Down kits for the assembly of motorcycles at 10 per cent under duty remission as the region awaits the finalisation of the EAC Assembly Regulations. Kenya has sufficient capacity to manufacture various products in the metal and allied sub-sector, thus providing employment opportunities to many Kenyans. To continue safeguarding this subsector, EAC ministers agreed that imported iron and steel products shall continue attracting a duty rate of 35 per cent with the corresponding specific rates for a further one year for Kenya. Our hardworking farmers are capable of producing enough food to satisfy domestic demand. In particular, local demand for most vegetable products has been adequately served by our farm produce over the years. To protect those farmers from cheap imports, Kenya has been allowed to extend the import duty rate of 35 per cent, in addition to the specific import duty rates on vegetable products for a further one year. The high cost of inputs of animal feeds coupled with other factors like unfavourable weather conditions make locally manufactured animal feeds expensive and, hence, contribute to food inflation. To promote local manufacturing and make animal feeds affordable to farmers, Kenyans will import inputs for the manufacture of animal feed duty-free under the EAC Duty Remission Scheme for one year. Last year, we allowed manufacturers of baby diapers to access inputs for the manufacture of baby diapers duty-free. This was meant to lower the cost of manufacturing those essential products. I am happy to note that many companies have responded to this incentive by increasing production. To continue making those products affordable for our babies, EAC ministers allowed Kenya to extend the duty-free importation of inputs for the manufacture of baby diapers for a further one year. Moreover, to protect those manufacturers from competition from imported products, the region allowed Kenya to extend charging imported baby diapers at 35 per cent for a further one year. The leather industry is one of the priority value chains under the Bottom-Up Economic Transformation Agenda. To support local value addition and protect the industry from unfair competition, the EAC partner states agreed to retain import duty on imported leather and footwear products at a rate of 35 per cent. In addition, Kenya was allowed to extend the duty- free importation of raw materials and inputs for the manufacture of footwear products. Kenya has adequate capacity to meet local demand for roofing tiles. To facilitate access to Kenyan-made roofing tiles at affordable prices, Kenya was granted an extension of a duty- free window for importing inputs for the manufacture of roofing tiles for a further one year. To protect Kenyan producers of paper and paper products from the proliferation of cheap imports, Kenya was allowed to import those goods at a rate of 35 per cent for the next one year. To protect local production of safety matches, particle boards and plywood, among other goods of timber, Kenya was allowed to extend the charging of specific rates of import The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}