This week has been a really exciting box of chocolate in Kenya, first there was the flogging ( beating with a stick would be more accurate) of the former Prime Minister, then there is the Summoning of the President to the International Criminal Court ( ICC) to sit at a status Conference before Judges, it is also a week that the European Union put up an Advert on a local daily and stated that our preferential trade with them had expired or was to expire of course it was more detailed and very diplomatic.That would have been enough drama for the week if some old strong Brands were not shutting down their manufacturing plant and stating that they would prefer to bring in imports.
So most people have spent the week discussing the flogging scene and the hauling of the State Symbol to ICC. But if you asked me, the real issue is the closing down of the plant by EverReady batteries and the plan by Cad bury to close the Chocolate factory has a serious effect on our lives. When the European Union new tariffs and Quarters take effect it will also have another stinging effect on some of the businesses for farmers and those investors at the Export Processing Zones where a good number of Kenyans are employed. Europe accounted for 18.9% amounting to Kshs 7,548,000,000 of the Export Market. The main destinations for these goods were United Kingdom, Belgium, Germany, Switzerland and Netherlands. These zones support 0ver 35,000 people as per 2012 according to the EPZ report http://epzakenya.com/Annual_Performance_Report_2012.
According to John Njiru Daily Nation October 2, pp37. Cadbury is closing down its manufacturing plant in Nairobi this month as part of its global transformation strategy to reinvent its supply chain. the affected staff are around 300 who will loose their jobs. this company has been in business for the last 60 years.
In Eveready 99 jobs were lost because of the restructuring. previously another company Reckitt Benkiser also vacated the market as well as Colgate Palmolive. Apparently these may be American Companies.
There three things that are apparent:-
- That we have a good market and that is why the firms still want to sell their products but prefer to manufacture cheaply elsewhere in the world. I believe, that it is time the consumers decided buy made in Kenya since that ensures that there are jobs for our brethren.Why buy a product that is manufactured elsewhere loosing all the market for our raw materials and jobs in the industry.
- The tax gurus need to spend more time in identifying the best method of making Government money without sending investors away.
- Why was the reclassification of Kenya's economy a huge story this week in the market when all these affairs happened.
