Cane growers opposed to single regional tax regime
Sugarcane farmers at a meeting organized by Kenya Sugarcane Growers Association (KESGA) at the Aga-Khan hall in Kisumu on February 21, 2014. Sugarcane farmers have rejected the decision of the government to adopt the single customs tax regime applying to all East African states. FILE | PHOTO | JACOB OWITI | NATION MEDIA GROUP
What you need to know:
- He said traders in countries like Uganda took advantage of the single taxation regime to exploit Kenyan sugarcane farmers
- Kakamega leaders have in the past complained about the new tax regime and urged the government to delay its implementation to allow farmers to prepare for competition
Sugarcane farmers have rejected the decision of the government to adopt the single customs tax regime applying to all East African states.
The decision would plunge the industry into a fresh crisis as some countries in the region imported cheap sugar from Brazil, repackaged it and smuggled it into the country, claimed Kenya National Sugarcane Farmers Union secretary Simon Wesechere.
The unionist said ports like Kisumu were used by unscrupulous traders to smuggle cheap imports into the country.
“We conducted investigations at the Kisumu port for two weeks and discovered that 3,000 tonnes of sugar were finding their way into the country weekly through the lakeside town,” said Mr Wesechere.
He said traders in countries like Uganda took advantage of the single taxation regime to exploit Kenyan sugarcane farmers.
“We call upon both President Uhuru Kenyatta and Agriculture Cabinet Secretary Felix Koskei to come to the aid of farmers and struggling milling firms.”
Kakamega leaders have in the past complained about the new tax regime and urged the government to delay its implementation to allow farmers to prepare for competition.
