Tax rice and sugar imports highly, governors urge authority

What you need to know:

  • Without providing details, Mr Ndathi cited a case where some importers were bringing in sub-standard goods and blending them with local products to dupe buyers.
  • Kenya Association of Manufacturers chief executive Betty Maina argues that Kenyan firms continue to grapple with subsidised imports, counterfeits and substandard goods.
  • At Governors Summit held in Naivasha last week, Marsabit County governor Ukur Yatani proposed that the tax authority should work with the counties to help curb the vice.

Two governors want the Kenya Revenue Authority to impose high taxes on imported farm produce.

Kirinyaga’s Joseph Ndathi and his Murang’a counterpart Mwangi wa Iria said tea, rice and sugar industries were making losses because of cheap imports.

Mr Ndathi added that some of the imports were of inferior quality. “If we hope to see the country grow in double digits, we must protect our own industries,” said Mr Ndathi.

Without providing details, Mr Ndathi cited a case where some importers were bringing in sub-standard goods and blending them with local products to dupe buyers.

Mr Mwangi singled out the local horticultural industry noting that it was vulnerable since much of the produce was perishable.

Kenya Association of Manufacturers chief executive Betty Maina argues that Kenyan firms continue to grapple with subsidised imports, counterfeits and substandard goods.

“Over and above this, the average import tariff of 12 per cent for the East African Community customs union is perceived not to be protective enough compared to that of India, which is said to be at 60 per cent,” says Ms Maina.

She added that partner states are also notorious for using discretionary powers failing to honour the customs union by importing goods at lower tariff rates than agreed.

Porous borders and laxity by some tax officers have been cited as a major cause for the influx of contraband goods. Kenya’s borders with Ethiopia and Somalia have particularly been easy passage routes owing to their long stretch and insecurity, which has made control a challenge.

At Governors Summit held in Naivasha last week, Marsabit County governor Ukur Yatani proposed that the tax authority should work with the counties to help curb the vice.

He argued that locals could be recruited to act as informers in regions where professionals were not willing to venture to insecurity.