CS Kinyanjui calls for release of VAT refund billions as investors grow restless

The Ministry of Investments, Trade and Industry has called for urgent measures to pay VAT refunds to companies as one way of promoting industrial growth and increasing investment in the country.

According to Trade CS Lee Kinyanjui, delayed refunds running into billions of shillings are eroding investor confidence and affecting planned expansion.

The CS spoke as he revealed that they were working on reviewing VAT rates for exports while engaging the Kenya Revenue Authority (KRA) to urgently address the refunds.

“We have come to identify VAT refunds as one of the biggest challenges currently facing companies and we are keen to resolve this while reviewing VAT for exports,” he said.

Kinyanjui noted that the ministry would play a critical role in accelerating economic growth which in turn would result in increased job opportunities and revenue for the country.

The CS was speaking in Sawela Lodge in Naivasha during a two-day workshop for top leaders in the ministry organized by the Kenya Bureau of Standards (KEBS).

Kinyanjui challenged the senior officers to help the government actualize its agenda through the provision of employment and support for locally manufactured goods.

He identified tea and flowers as some of the major products that could propel the economy further as global demand and new markets continued to emerge.

The CS noted that for years, the country had relied on Iran, India and Iraq as some of the traditional tea markets but this was gradually changing.

“With the political change in some countries like Iran, we are now seeking new markets like China where demand for tea is on the rise,” he said.

On flowers, Kinyanjui said that many companies were fleeing from Colombia due to the high cost of labor and eyeing land in Kenya, terming this as a blessing in disguise.

“One of the biggest challenges facing the country is lack of one source of data mainly in the industrial sector and we should urgently address this,” he said.

On the African Growth and Opportunity Act (AGOA), he exuded confidence that ongoing talks with the US would yield fruits and give the country an extra three years.

Others who spoke were Industry Principal Secretary Juma Mukhwana who noted that there was a need to increase the number of counties hosting manufacturing companies.

“Six counties including Nairobi, Mombasa, Kiambu, Nakuru, Machakos and Kisumu host 90 percent of manufacturing companies in the country and there is a need to devolve this,” he said.