Western Kenya investors have decried delays in accessing Tanzanian market. Crown Paints CEO Rakesh Rao said they are losing millions of shillings and man hours while transporting goods to Mwanza.
“We are calling upon the ministry of industrialisation to help us access Mwanza. We have issues with the Tanzanian Government,” he said during the launch of their newly constructed plant in Kisumu worth Sh400 million.
Crown Paints has constructed a factory in Kisumu County to serve the East Africa Community (EAC). He said it takes them about 20 days to transport their goods to Mwanza due to bureaucracies on Value Added Tax (VAT) set by the Tanzanian Government.
“A process that should be taking approximately three days for us to export our products to Mwanza, sometimes takes about 20 days. The process to sign the documents by Tanzanian Government takes so long,” he said. He said if the system in Tanzania works, the company will be able to triple its turnover.
He asked the County Government of Kisumu to focus on developing water transport so as to reduce transportation costs to Tanzania and Uganda. Kisumu Governor Jack Ranguma said the investment is an assurance that the county is on the right path of establishing itself as an economic hub. “It will address the needs of the construction industry,” said Ranguma.