Steelmakers take dispute on imports to EAC

Kenya Association of Manufacturers (KAM) CEO Phyllis Wakiaga (left) and Industrialisation Cabinet Secretary Adan Mohamed during the private sector breakfast on July 16, 2015. Local steel manufacturers through KAM have accused the government of refusing to shield them from cheaper Chinese steel. PHOTO | DIANA NGILA |  NATION MEDIA GROUP

In Summary

• The traders are lobbying the five-member trading bloc to increase import duty to protect their businesses.
• Through the Kenya Association of Manufacturers (KAM), they have accused the government of refusing to shield them from cheaper Chinese steel.
• KAM boss Phyllis Wakiaga said the lobby group is seeking to convince EAC countries to include steel on the list of sensitive products so as to impose duty.
• Industrialisation Cabinet Secretary Adan Mohamed said the economy is benefiting from cheap steel prices as they have fuelled the construction sector which is growing at over 14 per cent.

By OTIATO GUGUYU
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Local steel manufacturers have escalated their dispute with the government over cheaper imports from China to the East African Community (EAC).

The traders are lobbying the five-member trading bloc to increase import duty to protect their businesses.

Through the Kenya Association of Manufacturers (KAM), they have accused the government of refusing to shield them from cheaper Chinese steel.

IMPOSE DUTY

KAM boss Phyllis Wakiaga said the lobby group is seeking to convince EAC countries to include steel on the list of sensitive products so as to impose duty.

Ms Wakiaga said the industry is also seeking the intervention of the Kenya Revenue Authority to protect the steel industry from cheaper Chinese steel.

“We are trying to see in this round of budget processes if the EAC countries can concur on some of these issues to address these challenges,” Ms Wakiaga told journalists in Nairobi on Friday.

However, Industrialisation Cabinet Secretary Adan Mohamed said the economy is benefiting from cheap steel prices as they have fuelled the construction sector which is growing at over 14 per cent.

Mr Mohamed said that that Kenya is a big user of steel and the government has to balance between the two sectors.