CS Matiang'i Assures Tax Reduction on Shoe Imports From China

Interior CS Fred Matiangi (on phone) during a meeting with Kamukunji Business Community on Monday, August 16, 2021.
Interior CS Fred Matiangi (on phone) during a meeting with Kamukunji Business Community on Monday, August 16, 2021.
Twitter

Interior CS Fred Matiang'i has personally vowed to ensure a reduction in taxes following a meeting between Kamukunji traders and Kenya Revenue Authority (KRA).

Speaking during a meeting with Kamukunji Business Community on Monday, August 16, the CS assured the community of review in government taxation on imported shoes from China.

This comes after the traders, who rely mostly on the sale of second-hand products from China, lamented exorbitant taxation hence lowering their profit margins.

The CS further vowed to engage the Chinese Embassy in Kenya to relax the requirement that all Kenyans seeking to fly to the Middle East nation must obtain Covid-19 vaccines manufactured in China.

Kamukunji Gateway Mall.
Kamukunji Gateway Mall.
Twitter

"Engaged with representatives from Kamukunji Business Community and assured them of a review of government taxation on imported shoes to allow for a fair and competitive advantage.

"Talks with the Chinese Embassy are underway to relax the strict requirement for Kenyans to get Chinese made vaccines prior to visiting the Country," stated Matiang'i.

Speaking to Kenyans.co.ke, a representative from the Presidential Delivery Unit (PDU) clarified that the talks between the business traders and KRA have been ongoing for a while.

He further explained that Matiang'i agreed to follow up an agreement that sought to reduce a 40-foot container of shoes from Ksh5 million to Ksh2 million.

"There were conversations that were ongoing between Treasury in its capacity as the owner of Kenya Revenue Authority (KRA) and the businessmen. 

"What these guys are saying, there has been conversation s between the importers of shoes and KRA and Treasury. What CS is promising is a follow up of that meeting to confirm the agreement that was done at that time."

"What they are saying is that they are being charged a very high duty of almost Ksh5 million per 40-foot container. They want this to go down to Ksh2 million which was the figure agreed on then. The CS is promising that agreement to come to effect," the representative added.

Kenya gets 21 per cent of its total imports from China which was valued at Ksh371 billion in 2018. In 2020, the imports slumped slightly due to the Covid-19 pandemic to stand at Ksh339 billion.

Traders pictured in Gikomba Market, Nairobi.
Traders pictured in Gikomba Market, Nairobi.
File