September 21, 2016

Tax Culture


Manufacturing is a key pillar of the big four agenda as well as one of the key sources of revenue. A vibrant manufacturing sector is key to the achievement of the policy aspirations under the Big Four Agenda, due to its linkage with other economic sectors such as agriculture and services, and also due to its high labour intensity. The sector currently accounts for 9.2% of GDP in Kenya, and 11.7% of total employment in the formal employment and 20.4% in the informal employment. Additionally, over 90% of the manufacturing sector enterprises are micro and small employing less than 50 persons1. According to the Kenya Association of Manufacturers, 2018 Manufacturing Priority Agenda, the sector has the highest multiplier effect of all the economic sectors, with every $1 worth of manufactured product creating $1.34 in the rest of the Economy2. It is therefore critical to address issues that may impede competitiveness of the sector. During a Presidential Roundtable held in May 2018, the key issues addressed included the need to tackle illicit trade, expand market access and reduce the cost of doing business. This thematic area will therefore focus on discussions around these areas, as well as the need for expanding the tax base through taxing the informal players in the sector.

This will be achieved through three break-away sessions on the following topics;

  • Tackling Illicit Trade and Tax Crimes
  • Promoting Intra-Africa Trade to secure and expand market access