Manufacturers shift to online trade amid high taxes

Manufacturers and suppliers in the construction and automobile sectors have devised ways to survive in the face of high taxation and skyrocketing cost of fuel and energy.

Most of the dealers have resorted to online business to reduce the time and cost of transportation to make ends meet.

Speaking during an Expo at the Eastern Bypass on Saturday, New  Paleah  Chief Executive Douglas Kuria said for instance, suppliers are stocking products ordered online so that rather than wait for the 30-days duration of importing products from China or India, they are delivered in just  24 hours.

Kuria said hardware dealers and transporters are also cashing in on the government’s housing project by supplying the requisite materials on time.

“We are following up on the government housing projects and providing a backup. We want to be part of it’s successs by ensuring high quality house finishing supplies are delivered in time,” said Kuria.

The CEO said the exhibition which brought together more than 20 manufacturers and suppliers, 18 of them local and two global, is the first of its kind and will be held annually.

Julien Pioger, General Manager CFAO Motors Kenya Ltd said the sales for automobiles has dropped by 15 per cent as a result of high cost of fuel and increased taxes but added that despite this, the business is likely to pick up in the near future.

Nitco Tiles Ltd business development manager Binu Raj Nair said inspite of the high cost of living globally, the future of doing business in Kenya is still bright.

“Inflation is a global phenomenon affecting not only Kenya, but we are a resilient country and soon we shall come out of this better and stronger,” said Nair.