The National Assembly’s Committee on Trade, Industry, and Cooperatives has called for an investigation into the rising cost of cement and steel, despite policies meant to boost local production.
Committee Chairperson, Embakasi North MP James Gakuya, raised concerns over the price surge, noting that the Export and Investment Promotion Levy was introduced to support domestic manufacturing of construction materials.
The Finance Act 2023 imposed a 17.5% levy on imported cement clinker, steel, and paper products to promote local production. However, Gakuya noted that prices have continued to rise, negatively impacting the real estate sector.
“Since the introduction of this levy, cement and steel prices have kept going up. This has hurt the construction industry, and urgent action is needed,” Gakuya said during a session with Investments, Trade, and Industry Cabinet Secretary Lee Kinyanjui.
CS Kinyanjui, who appeared before the committee to defend the Ministry’s 2025 Budget Policy Statement, was accompanied by Industry Principal Secretary Dr. Juma Mukhwana and representatives from the State Departments of Investment Promotion and Trade.
Gakuya stressed that the high cost of cement and steel is affecting ordinary Kenyans. “As a committee overseeing the industry, we cannot ignore this issue. The ministry should assess the levy’s impact and recommend solutions,” he said.
Committee Vice Chairperson, Aldai MP Marianne Kitany, called for a probe into how much levy has been collected, how it has been spent, and the number of new industries established since its introduction.
CS Kinyanjui defended the levy, saying it was meant to support local manufacturing. However, he admitted that rising prices contradict its intended effect.
“The steady rise in prices of locally manufactured cement and steel, despite global prices going down, is concerning. The expectation was that prices would drop,” said Kinyanjui.
He added that the Ministry has formed a team to investigate whether manufacturers are colluding to inflate prices. “If we find evidence of price fixing, we will take action,” he assured MPs.
Earlier, Kinyanjui informed the committee that the three State Departments under his Ministry face a budget shortfall of nearly Sh36 billion.
“The State Department of Trade has a funding gap of Sh10.8 billion, while the State Departments of Industry and Investment Promotion need an additional Sh6 billion and Sh19 billion, respectively,” he said.
Email your news TIPS to Editor@Kahawatungu.com — this is our only official communication channel
