Electronics maker Samsung has announced it has abandoned plans to put up an assembly plant in Kenya over fears it would open flood gates for cheap electronic imports.
The company cited failure by Government to put in place mechanisms that would protect local manufacturers from cheap imports.
“Building a local assembly plant depends on how the Government will protect these investments… there are many products that are coming in without paying the required duties and taxes,” said Mr Yoon, who spoke in Nairobi during a Samsung summit for its local partners.
In 2013, Samsung announced plans to open a television, laptop and printers’ assembly plant in Kenya by end of year positioning Nairobi as the nerve centre of its operations in East Africa.
However with the latest development, the news will crush many hopes of the thousands – unemployed youths.