How heavy taxation, illicit trade killing Kenyan industries

The country is considered East Africa’s strongest economy. It is among countries facing a huge challenge of illicit trade, estimated to be valued at above USD6.34 billion (Ksh800 billion). According to official government data, up to 70% of imported goods are counterfeits. Kenya has a domestic market of over 50 million people and is among the leading economies in sub-Saharan Africa. The country is considered East Africa’s strongest economy, with the region having a GDP of about USD163.4 billion (at purchasing power parity, about USD$473 billion), and the average GDP per capita is about USD941 (at purchasing power parity, $2,722). In addition to the EAC market, investors in the partner States have access to other African markets such as COMESA, SADC and AfCFTA, as well as international markets through preferential trade arrangements. The Common Market for Eastern and Southern Africa (COMESA) comprises 21 Member States with a population of 560 million, and a total GDP of USD768 billion. This is one of the largest trading arrangements in Africa. Kenya, Rwanda, Uganda, Burundi and South Sudan are members of COMESA, whereas Tanzania withdrew from the organization in 2000. This, together with the domestic market provides a huge ready market for manufacturers