The Finance Minster of Kenya, Mr Kenyatta in his budget speech had announced a waiver on customs duty on imports of yarn and second hand clothes, the decision against which the textile units are up in arms.
The textile mills say that this decision will result in closures of the already in a bad condition textile mills and could put in jeopardy the livelihood of more than 6,200 textile mill workers.
The Kenya Association of Manufacturers (KAM) has alleged that decision will have a negative impact on the already tottering sector and is not conducive to developing the value chain in the textile sector.
While announcing the 2009/2010 budget, the minister had reduced import duty on all synthetic yarns, acrylic yarn, polyester yarn and high velocity yarn from the current rate of 10 per cent to zero per cent.
On second hand clothes he reduced it from the current rate of 30 US cents a kilo or 45 per cent whichever is higher to 20 US cents a kilo or 35 per cent whichever is higher, in order to make clothing affordable to the poor.
Fibre2fashion News Desk - India