Sunday, March 7, 2010

KENYAN ACTION

Ministry proposes ban on used computers


Information and Communications PS, Dr Bitange Ndemo, says his ministry is proposing to Treasury to include in the next year’s Budget a ban on used computers.
By Okuttah Mark
Posted Monday, March 8 2010 Business Daily

The government is proposing a ban on second-hand computers to curb dumping and encourage local assembling.

A study on electronic waste conducted in Kenya in 2008 indicated that the country generated 3,000 tonnes of e-waste from computers, monitors and printers in 2007.

Information and Communications PS, Dr Bitange Ndemo, says his ministry is proposing to Treasury to include in the next year’s Budget a ban on used computers.

The government zero-rated duty on imported computers in 2006, a development that led to rise in imports.

Dr Ndemo said last week over the years many government incentives have made new computers affordable, adding there was no need for imports with short life span that led to accumulation of e-waste.

While new computers can last up to eight years, the second-hand machines can only go for three years.

“The organisations shipping in these used computers are being paid to get them out of those countries but are disguising themselves as donors assisting Kenya’s schools,” said the PS. “It is cheaper for companies in the developed world to pay these organisations to bring the computers here than destroy them.”

Removed VAT

A study conducted by Eco Ethics International in 2007 on the impact of imported second-hand computers in the country show that those dealing in these computers started bringing them in 2003 but the number doubled after the removal of VAT.

“When asked on the development of the business over time, we were shocked at their response,” reads part of the research report.

“The business only picked up in 2003 and doubled in 2006 when the government removed VAT.”

During this year’s Budget read last year, the government announced a one-million laptop campaign where it was to guarantee interests on loans borrowed from banks for buying a laptop or personal computers (PCs).

However, the private sector, mainly the telecommunications companies embarked on a similar initiative that made the government to retreat, leaving it to the private sector.

The operators have partnered with various financiers and are offering laptops from Sh25,000 and Sh75,000.

On the other hand, refurbished computers retail from as low as Sh15,000.

Several non- governmental organisations, such as Computer-Aid International and Computer for Schools Kenya (CFSK) are among those who have been receiving computers from donors and distributing them to the learning institutions.

However, CFSK is among the organisations that have embarked on projects to reduce e-waste in the country.

No comments: