A newly released sector survey says the imports are growing at 22 per cent annually while local manufacturing of timber and wood-based products are growing at a mere seven per cent.
Industry players proposed that import duty for raw and semi-processed products reverts to 25 per cent and that 35 per cent import tariff be maintained for imported finished products.
The Kenya Association of Manufacturers (KAM) has warned that uncontrolled influx of finished wood-based panels and furniture products will wipe out timber-related industries.
A newly released sector survey says the imports are growing at 22 per cent annually while local manufacturing of timber and wood-based products are growing at a mere seven per cent.
The report tabled during a stakeholders’ sector committee meeting in Nairobi said the future for local timber manufacturing is not guaranteed especially after the government increased import tariffs for raw wood and semi-processed wood-based panels products from 25 per cent to 35 per cent amidst a logging ban.
“There will be an influx of imported wood panels and furniture products with the local scene witnessing reduced value addition. Furniture manufacturers will be encouraged to outsource their production offshore, since it is cheaper to import than locally produce,” said the statement.
Industry players proposed that import duty for raw and semi-processed products reverts to 25 per cent and that 35 per cent import tariff be maintained for imported finished products.
The findings come after the Kenya National Bureau of Statistics released its third quarter Producer Price Index showing timber prices rose by 36.18 per cent while furniture prices rose 11.73 per cent in the past year following imposition of a logging ban.
It added that a ban on logging saw prices of timber meant for the construction industry rise as well as wood fuel prices, adversely affecting the lives of low income earners.
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