Govt Announces 5 Measures Including Reversal of Tax Increase After Meeting Traders Over Imports

DP Rigathi Gachagua (left) speaking to President William Ruto (left) on March 11, 2024
DP Rigathi Gachagua (left) speaking to President William Ruto (left) on March 11, 2024
PCS

The government has reversed the increment of import duty by Ksh500,000 after an uproar from traders drawn from Nairobi County.

In a statement sent to Kenyans.co.ke by the Office of the Deputy President, it was revealed that traders had lamented over the increase of the tax from Ksh2.5 million to Ksh3 million.

The DP, Rigathi Gachagua, noted the traders expressed that the increase was not justified adding that many businesses had been affected by the increment.

On the other hand, Gachagua directed the taxman to consult traders whenever they intend to take new tax measures.

A port official handling containers at the Mombasa Port on April 7, 2022.
A port official handling containers at the Mombasa Port on April 7, 2022.
Photo
Kenya Ports Authority

"The government also reversed the decision on the increment of import duty from Sh2.5 million to Sh3 million on each container. This is after the traders complained that the extra Sh500,000 was not justified and that they were not involved.

"The Deputy President also said the traders will be issued with a single certificate of conformity and compliance from the Anti-Counterfeit Authority and Kenya Bureau of Standards instead of double inspection of goods by the two State agencies," read the statement in part.

Most traders who were affected were those importing electronics, second-hand clothes, motorcycle spare parts, textiles, stationery, computers and ICT accessories.

Additionally, the DP directed government agencies including the Anti-Counterfeit Agency to take action against officers who were accused of demanding bribes from traders.

It was alleged that some officers tend to demand the inspection of containers to look for fake items.

Police officers who have served at various inspection centres for over three years will also be transferred.

"It was agreed that, henceforth, the Anti-counterfeit body will involve traders in the verification and inspection of their goods and that KRA will not introduce levies or import duty on goods without public participation with the stakeholders.

"KRA will negotiate with the Kenya Ports Authority and shipping lines on the release of the withheld goods. On the withheld containers, the importers will pay the initial agreed duty and KRA to expedite clearance of the containers for release to the traders by next week," the DP stated.

The new measures were announced following a meeting between the DP and traders drawn from Gikomba, Muthurwa, Luthuli Avenue, CBD and River Road at his Karen residence.

Another meeting will be held on April 10 to evaluate the implementation of the new measures.

Deputy President Rigathi Gachagua at a meeting with traders at his Karen residence on March 28, 2024.
Deputy President Rigathi Gachagua at a meeting with traders at his Karen residence on March 28, 2024.
Photo
Rebecca Miano