Kenyan industry lobby leader says shortage of shipping containers affecting Chinese supplies

2021-03-15 16:55:37 GMT2021-03-16 00:55:37(Beijing Time) Xinhua English

NAIROBI, March 15 (Xinhua) -- The ongoing global shipping containers shortage is affecting the flow of Chinese supplies to Kenya's manufacturers, an industry lobby leader said Monday.

Mucai Kunyiha, chairman of Kenya Association of Manufacturers (KAM), told Xinhua in Nairobi that local industries are dependent on China for both raw material and intermediate inputs.

"Manufacturers are currently experiencing delays in receiving supplies from China. As a result our profits margins and cost of production will be affected this year," Kunyiha said.

The industry lobby leader revealed that between March and December 2020, industries were not affected by the slowdown in Chinese imports because their sales were also reduced.

He noted that the Kenyan economy has reopened and manufacturers are going back to full capacity hence the need for uninterrupted Chinese imports. Manufacturers remain optimistic that the crisis will be resolved in the next six months in order to normalize Sino-Kenya trade.

The delays have led to rising shipping costs for all inputs from China. Industries across all sectors have been affected by the slowdown in shipping from China.

"China is the hub for all manufacturing around the world and our industries are also affected by rising shipping costs," Kunyiha added.

KAM said that in the past decade Kenyan industries have shifted their source of supplies from the traditional markets of Europe and North America to China because it has emerged as the most cost effective country for inputs. Enditem