Traders at Taveta border decry multiple market levies from Kenya and Tanzania authorities

Mutuku Kimae, a trader at new Taveta market on the Kenya-Tanzania Border in Taita Taveta County on December 15, 2016. Traders have raised concerns over what they term as multiple taxation on goods they sale at the market. PHOTO | KEVIN ODIT | NATION MEDIA GROUP

What you need to know:

  • The traders say they are charged by the Tanzanian immigration officials while bringing in produce.
  • Mr Mutuku Kimae says before entering the market they are also subjected to another tax by the county government.
  • The new modern Taveta Market was constructed at a cost of about Sh320 million by the national government.
  • It attracts people from as far as Mombasa and the northern Tanzanian town of Arusha.

Traders at the modern Taveta market near the border with Tanzania have complained of double custom levies imposed on them by the Kenyan and Tanzanian authorities.

The traders say they are charged by the Tanzanian immigration officials while bringing in produce bought from the nearby towns in the country and are also charged for the same when they cross over to Kenya.

And when they get into their Taita Taveta County, they have also to pay levies.

Mr Mutuku Kimae, a wholesale onions and tomatoes trader says before entering the market, they are also subjected to another tax by the county government.

“We are not getting any profit from the goods we sell. For example, I import onions from Tanzania and I am charged Tsh20,000 upon reaching the border point. As if that is not enough, before the goods are allowed into the market, I pay Sh50 per sack and Sh40 per crate of tomatoes,” he said.

COUNTY LEVIES

Mr Kimae said business has greatly been affected since the Taita Taveta County government keeps on increasing charges thus making them incur losses instead of making profit.

“This has been the case. They keep on raising charges for the goods entering the market. This in turn increases the cost of doing business, you end up making losses instead of profit,” he said

He said at times, traders are charged Sh300 per truck and this does not go well with them since they end up using a lot of money in transport compared to the anticipated profit.

But the county executive member in charge of Trade and Community Affairs Flora Mtuweta said she is not aware that the traders are taxed twice by the Kenyan and Tanzanian authorities.

“I am not aware if such claims are true but I will launch investigations and discuss the matter with the national department of trade to address the traders’ grievances,” she told the Nation by phone.

FEES REASONABLE

However, she maintained that market fees collected by the county government are reasonable and mandatory for the traders to pay.

“I will talk to the traders myself and inquire more about their complaints. But whatever they are taxed within the country are market fees that they must pay,” she said.

Mrs Mtuweta said it would not be fair if the fees are levied twice as the traders claim and that the matter will be subjected to investigations before addressing it with the Ministry of Trade.

The new modern Taveta Market was constructed at a cost of about Sh320 million by the national government and was expected to boost revenue collection for the county.

The border market that sells farm produce such as tomatoes, onions, bananas, sweet potatoes, avocados and French beans, among others, was also expected to improve regional integration between Kenya and Tanzania.

FEW CUSTOMERS

The market has a wholesale and retail sections with stalls for traders who do not wish to sell their goods in bulk.

Mr Kimae, who is one of the traders who moved from the old open air market said customers rarely come to the new market because of distance and prefer the old market.

He said the county government should consider closing the old market so that more customers go to the new market.

“There are two markets here so it might be the reason this new market is not doing well. There is a need to shut down the old market so that this remains the only market in the area. Charges at the market’s entry should also be reduced to Sh20 per sack [as] this will boost our profits,” he said.

Another trader, Jackson Mwanyambo said the modern market has failed to spur cross-border business as was expected.

He said despite the market being strategically located in a way that it can boost business in the area, traders have continued to record loss due to the double taxation.

The modern market attracts people from as far as Mombasa and the northern Tanzanian town of Arusha.