Sorghum farmers plead for end to 50pc duty on beer
Ms Jane Kisia at her sorghum farm at Kano West Irrigation Scheme. Sorghum farmers from Kitui County are planning to collect a million signatures to petition President Kenyatta to abolish a 50 percent excise duty if their efforts to lobby Parliament and ministries fail. FILE PHOTO | MOSES ODHIAMBO | NATION MEDIA GROUP
What you need to know:
- The sorghum farmers are planning to collect a million signatures to petition President Kenyatta to abolish the excise duty if their efforts to lobby Parliament and ministries fail.
- According to their memorandum, copied to all MPs from sorghum-growing counties, the association is pleading with the House to amend the law which imposes tax on beer made from sorghum.
Farmers in 14 arid counties have mounted a “Save Sorghum Campaign” to scrap the 50 percent excise duty on beers.
The sorghum farmers are planning to collect a million signatures to petition President Kenyatta to abolish the excise duty if their efforts to lobby Parliament and ministries fail.
Through their umbrella body, the Cereal Growers Association, the farmers have approached the parliamentary committee on agriculture, the Cabinet Secretaries for agriculture and the National Treasury for talks.
According to their memorandum, copied to all MPs from sorghum-growing counties, the association is pleading with the House to amend the law which imposes tax on beer made from sorghum.
Association chairman Antony Kioko argues that the tax has led to job losses.
“In our view, there is no clear benefit for introducing the tax given that the end product is subject to Value Added Tax,” the memorandum reads.
The 50 per cent duty took effect last year. As a result, East Africa Breweries terminated the contracts of more than 100,000 smallholder sorghum farmers who enjoyed a ready market with the brewer.
Mr David Nyameino of Alliance for a Green Revolution in Africa said they hope parliament will act swiftly to save sorghum farmers.
