Kenya: New rules on imports could raise prices

By Magdalene Mukami

NAIROBI, Kenya

New rules on the certification of imports could push prices higher in a country already dogged by high inflation.

On Dec. 29, the Kenya Bureau of Standards (KEBS) released a notice saying that importers will have to attach a certificate of conformity to goods that they bring in to Kenya.

The certificate must be obtained from standards expert to ensure that the goods are compliant with national regulations. The KEBS said in a statement that the new policy will help the country to keep undesirable goods out of the country.

Previously importers were fined 15 percent of the customs value of goods that were deemed substandard. But the KEBS said some importers were able to avoid inspection, and that this loophole had to be plugged.

But smaller importers in Kenya say that the new rule will reduce their access to the market at a time when reduced consumer demand is already hurting their businesses. Further, the rule will favor big companies which do not import certain goods, so that prices could go up on these items -- inflation in Kenya is already at an annual rate of 8 percent.

One of the importers who wished not to be named told Anadolu Agency on Monday that the rule will induce manufacturers to only deal with big companies.

"I do not import goods in bulk; my goods come from China and are considered to be imports of low value. Suppliers will opt to work with the larger importers which import in bulk because of the new rule," the importer said.

Do not be surprised to hear in the next few months that there is a shortage of small products such as radios and other items which are not sold in large quantities," the importer added.

Anadolu Agency spoke to Matiba Mutindi, an economist from Laikipia University, on the importance of small importers to the Kenyan economy.

"The small importers are vital to boosting this country’s economy. These guys bring us garments, home appliances, office equipment and other items that big companies don’t import, because of their low cost and the fact that they are not immediately consumed," Mutindi said.

"What this means for consumers in Kenya is that they will have to dig deeper into their pockets, there will be a higher cost of goods to cover inspection fees imposed by the new rule," he added.

A lawsuit was filed on Jan. 3 contesting the ruling by activist Okiya Omtatah, who claims that the new rule is unconstitutional.