Posted on October, 26, 2018 at 09:42 am
By JAMES KARIUKI
The agro-processing sector has registered a 4.18 per cent decline in the last 12 months, an indication that Kenyans are consuming imported lower-priced food products.
The Kenya National Bureau of Statistics(KNBS) quarter three Producer Price Index (PPI) indicates a growing import-based economy blamed for loss of jobs and factory closures as well as diminishing farm produce market. The last three months has reported a 1.46 per cent market drop.
Stakeholders say high production costs and a non-payment of deliveries worth about Sh40 billion, pending for more than a year has forced many companies to go under and others to reduce operations.
The situation has been worsened by stringent government re-inspection measures for imported food-based industrial raw materials such as sugar and cooking oil. The re-inspection process has been marred by delays that have contributed to high storage charges.
KAM chairman Sachen Gudka warned that Kenya’s competitiveness on global markets is fast fading adversely hurting the future of local firms.
that once generated quality jobs for many Kenyans. Such firms include the cash-strapped Mumias Sugar Company.
“Agriculture is a mass employer but has sadly been relegated to the doldrums. Feasibility studies show the Coast region has adequate coconut stocks for setting up an oil refinery while cotton, groundnuts and sunflower stocks in Western Kenya and Rift Valley can power viable oil enterprises” he said.
Source: Business Daily