The Kenya Association of Manufacturers (KAM) has decried over punitive tax regime by the Kenya Revenue Authority’s (KRA).
The association expressed concern that the levies and charges imposed on traders risk having enterprises collapse and inevitable closure.
In a statement, KAM Chief Executive Officer Phyllis Wakiaga said the taxman’s directive for payment of landing fees and cess to Nairobi Metropolitan Services (NMS) managed Nairobi County government for all livestock and livestock products delivered, even if the same has been paid in the county of origin is punitive.
“Kenya Association of Manufacturers would like to register its concern about the landing charges unfairly imposed on livestock delivered to Nairobi County from other counties outside the NMS jurisdiction and export levy introduced in the proposed changes in food safety and export processes, through the NMS Export Certification,” she said.
Traders have had to raise the pricing of their animals and livestock products, raising the cost of manufacturing for manufacturers, which is then passed on to consumers.
“As we re-emerge from the disruption of the pandemic, as well as the upcoming general elections, this is the time to reassure and give confidence to investors and the business community. Uncoordinated fees and charges, that make the business environment untenable, do the exact opposite,” said Wakiaga.
According to the association, businesses have faced uncertainty this year as a result of the pandemic’s interruption as well as the forthcoming general elections. Now is the time to reassure and inspire trust among investors and business leaders. Fees and charges that are uncoordinated and make the business climate unworkable have the exact opposite effect.
These charges contravene Article 209 (5) of the Constitution, which requires that taxation and other revenue-raising powers of a county shall not be exercised in a manner that prejudices national economic policies, economic activities across county borders, or the national mobility of goods, services, capital, or labour.
The local manufacturing sector is keen to get Kenya back on track towards achieving a double-digit GDP contribution, but this will not happen if county governments continue to increase fees, levies, and charges at the cost of our economic recovery.
“We urge KRA and NMS to cease the above-mentioned unnecessary increments of charges to businesses. Even as they focus on sufficient revenue collection for enhanced service delivery, it is critical that we all prioritize actively creating room for sustainable economic growth through inter-county trade,” she said.
