Hello and welcome to the Evening Brief Newsletter where we are watching new levies roll out next month.
Situational Awareness: Join our expansive community of 20,000 subscribers and get a breakdown of the day's important stories delivered into your inbox. Join them by subscribing here.
Levies for Food Importers in July
Four new levies for food importers will begin rolling out in July, the Agriculture and Food Authority (AFA) stated in a notice on Tuesday.
The authority indicated that the levy contained in the Crops (Food Crops) Regulations 2019 was developed by the Authority together with the Ministry of Agriculture and Livestock Development
What the Authority is Saying: "Under the provisions of these regulations, the Authority through the Food Crops Directorate hereby notifies all food crops importers and exporters that starting 1st July 2024, the imposition of levies will commence."
The New Levies: Kenyans importing cereals will need to pay 2 per cent of the customs value while those exporting the commodity will pay 0.3 per cent of the customs value.
- Kenyans who will be importing legumes will also be required to pay 2 per cent of the customs value and 0.3 per cent for exports. Those exporting roots and tubers will be required to pay 1 per cent for imports and 0.3 per cent for exports.
- The affected foodstuffs include sweet potatoes, cassava, beans, cowpeas, peas, soya beans, rice, oats, maize, barley, wheat, and sorghum among others.
Additional Rules: The levy shall be paid at the point of exit or entry not later than the 10th of every month. The money will be forwarded to an authority or an appointed agent.
Penalties: If a person fails to pay the levy within the set timeline, they will pay the levy and an interest of 25 per cent of the outstanding amount and a compound interest of 12 per cent of the outstanding amount.
Catch Up Quick: This comes even as Kenya Association of Manufacturers (KAM) Chief Executive Anthony Mwangi expressed fears that more foreign investors were likely to flee the country should the Finance Bill pass through Parliament as is. He argued that a new slate of taxes was punitive for businesses.
Up For Grabs
Looking to acquire an unserviceable vehicle, well, President William Ruto's office in Nairobi will be disposing of rides through a public auction.
In a Gazette Notice today, the office of the President revealed that it will be seeking to offload unserviceable motorcycles, tyres, car batteries, rims and other assorted items.
"The prospective bidders are required to pay a refundable deposit of Ksh50,000 payable in the form of cash at the cash office, Executive Office of The President - State House in Nairobi during normal working hours," read the notice.
How to Bid: The auction will be held on June 14 starting from 10 am at the State Department for Roads in Ruiru, Kiambu County.
Interested bidders may obtain further information by visiting tenders.go.ke and president.go.ke to download a catalog containing details of the venue, items to be auctioned, conditions of sale and date of viewing.
Expanded Offerings: The National Police Service Commission (NPSC) and the Kenya Airports Authority (KAA) have also placed cars on auction.
- NPSC put seven government vehicles on auction with a reserve price as low as Ksh80,000. The vehicles include; 2 Land Rover Discovery 4, Suzuki G/Vitara, Renault Fluence, and 3 Nissan Navara.
- KAA will hold its auction from June 3 to June 10. Bidders will be allowed to view the items from May 29 to May 31 during working hours.
Taking Charge
Since the consumption of Muguka, a relative of Miraa, was unceremoniously banned by Mombasa Governor Abdulswamad Nasir, President William Ruto has taken charge declaring the ban null and void.
After holding a meeting with Governor Cecily Mbarire and a slew of other leaders, Ruto confirmed that Miraa was a scheduled plant that has already secured Ksh500 million in the 2024/2025 Financial Year.
Here is the timeline of the intensity of the Muguka ban.
Thursday, May 23: Mombasa Governor Abdulswamad Nasir bans the entry, distribution, sale, and use of Muguka. He argued at the time the public had lamented that the youth were wasting away their lives. The ban was in consultation with the National Authority for the Campaign Against Drug Abuse (NACADA).
Friday, May 24: Kilifi County follows suit by banning the entry, transportation, distribution, sale and use of Muguka. He promised to bar vehicles transporting the drug from crossing the county.
Saturday, May 25: Uproar from farmers in Embu and Meru who argue that the ban on the sale will lead to losses of millions of shillings leading to over 400 job losses.
One of the farmers filed suit in Embu seeking reversal of the ban arguing that the drug was not as potent as others like marijuana and alcohol. Consumers swore they were never hospitalised from partaking in the drug.
Sunday, May 26: Taita Taveta County joins Mombasa and Kilifi in banning the sale and use of Muguka. Governor Andrew Mwadime argued that the county’s youth were hooked to the stimulant and as a result they were unproductive.
“A huge number of youth consuming Muguka in the county have turned to be unproductive and overdependent at an alarming rate," he stated
Monday, May 27: President William Ruto meets Embu Governor Cecily Mbarire, who is also an official at UDA, as well as the county's senator, MPs and all MCAs and directs Agriculture CS Mithika Linturi to hold consultative meetings and address concerns raised by Muguka farmers.
Ruto further declared the bans null and void and confirmed that the plantation of the drug had been approved by Parliament and the Senate.
"The future of Miraa/Muguka is in scaling up farming, aggregation, grading, pricing, packaging and value addition of the crop. For this reason, the government has committed KSh500 million in the 2024/25 Financial Year for value addition of these scheduled crops," concluded the State House meeting.
Tuesday, May 28: Muslim leaders in North Eastern have mounted pressure on Garissa, Wajir, Mandera, Isiolo, Tana River, and Marsabit to ban Muguka citing health concerns.
"If you look at school attendance in these counties, it is very low, and there is no day the sale of this product has brought profits, even to the traders," lamented a leader
However, a High Court in Embu temporarily suspended the muguka ban effected by the three Coast counties until a case is heard. The case is scheduled for June 8.
Tuesday Afternoon: President William Ruto called governors of Mombasa, Kilifi and Taita Taveta who agreed to participate in a meeting of all stakeholders to be convened by the Ministry of Agriculture and Livestock this week.
"We agreed subsequently to convene a meeting of political leaders of the affected counties next week," Ruto stated.
Here are five other stories you should keep in your mind;
- Businesses that exercise unfair competitive advantage over their suppliers will now contend with Ksh10 million fines and possible jail terms.
- Bomet governor Hillary Barchok has fired back at Ruto’a ally Oscar Sudi over remarks directed at Deputy President Rigathi Gachagua.
- KRA revises its working hours as the deadline for filing tax returns fast approaches.
- Everstrong, an American contractor in charge of constructing 440 kilometres of the Nairobi-Mombasa Expressway will be given the authority to manage the infrastructure for 30 years.
- TSC says it is ready to employ 26,000 Junior Secondary School (JSS) intern teachers on permanent and pensionable terms. The service has 46,000 interns.
If you enjoyed this newsletter, share it with a friend.
This newsletter was written by Derrick Kubasu and edited by Brian Muuo.
Washington Mito contributed to the content.
Graphics prepared by Adongo Kyalo.
