David Osiany speaks on the state of trade & industry in Kenya during COVID-19

Kenya, like many other countries, has faced severe economic challenges as a result of the COVID-19 pandemic. With 1.7 million people losing their jobs and businesses struggling to stay afloat, the government has been implementing various measures to support the trade and industry sectors. In a recent interview with CNBC Africa, the Chief Administrative Secretary of the Ministry of Industrialization, trade and enterprise development in Kenya, Honorable David Osiany, shed light on the current state of trade and industry in the country. Osiany highlighted both the negative and positive impacts of COVID-19 on Kenya's economy. He mentioned that while there was a decline in some sectors such as hospitality and services, exports actually grew by about 7.8%. However, overall, the pandemic has had a tremendous effect on various industries. To combat the job losses and business closures, the government has implemented a series of measures to support small and medium-sized enterprises (SMEs). Osiany explained that the government allocated a credit guarantee fund of three billion shillings (approximately 30 million US dollars) to help SMEs get back on their feet. Additionally, various tax reductions were implemented to ease the financial burden on businesses. The government also provided relief to individuals who were struggling to repay their debts. Despite these efforts, there have been concerns that the government's support has primarily benefited formal businesses, while those in the informal sector have been left behind. Osiany acknowledged the challenge of reaching informal traders but emphasized that many of them belong to formal groups such as cooperatives, which have also received government assistance. One of the key government initiatives aimed at reviving the economy is the development of constituency industrial development centers at the village level. These centers are designed to support innovation and job creation in local communities. Osiany highlighted the government's commitment to improving the manufacturing sector and creating more opportunities for entrepreneurs at the grassroots level. Addressing the concerns raised by manufacturers about high levels of taxation, Osiany acknowledged the need to strike a balance between generating revenue for government programs and creating a conducive environment for investors. He mentioned ongoing discussions to review the tax policies to better support businesses. In terms of regional trade, Kenya has strong economic ties within the East Africa community and other regional blocs. Osiany emphasized the importance of trade agreements such as the Economic Partnership Agreement (EPA) with the UK, which was crucial in light of Brexit. He also touched on the ongoing negotiations with the US for a Free Trade Agreement (FTA), stating that the discussions are at an advanced stage. Overall, Osiany expressed optimism about the future of trade and industry in Kenya, citing the government's commitment to supporting businesses and creating a more robust economic environment.