A Mombasa-based glass manufacturer is warning that it could be forced to close Kenyan operations under the heavy weight of high production costs coupled with proliferation of cheap imports.
Milly Glass Works director Mohamedraza Rashid says the EAC and COMESA agreements have opened doors for cheap products from member states forcing it to review its investment decision.
Sameer Africa, Cadbury and Eveready East Africa are some of manufacturers that have closed down operations in Kenya in recent years.
Milly Glass Works Ltd, a glass manufacturer, could be following suit if sentiments by the firm’s senior officers are anything to go by.
They say the company is rethinking its investment decision following the proliferation of cheap imports owing to porous borders and high production costs.
The firm which has been in operations in Kenya for the last 40 years and has over 2,000 employees.
He says the glass manufacturer had planned to invest Sh600 million in expanding operations before July 2019 but the decision is now being reviewed.
The company is considering relocating operations to neighboring Ethiopia and the reasons are.
He urged to the government to take strong steps to protect and support the local industries.