The Kenya Association of Manufacturers (KAM) through its CEO Phyllis Wakiaga has registered concerns on what it terms as unfair imposition of fees on businesses by the Kenya Revenue Authority (KRA). The concerns were aired on behalf of the Nairobi Metropolitan Services (NMS).
According to KAM, landing charges were unfairly imposed on livestock delivered to Nairobi County from other counties outside the NMS jurisdiction by the KRA. To cater for the additional cost, farmers raise the prices of their livestock and livestock products, thereby increasing the cost of production for manufacturers who buy from them. This overall cost of doing business in this case consequently falls on the buyer, the Citizens.
KAM also expressed concerns over export levy introduced in the proposed changes in food safety and export processes, through the NMS Export Certification. This proposal, according to the Association, goes outside of the public health inspection mandate of the NMS. This is in addition to the public health inspection fee charged by the National Government.
“This year projects a lot of uncertainty for businesses, 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. The new costs not only render the manufactured goods uncompetitive but also exacerbate an already dire situation as Kenyans try to make ends meet,” read part of the statement by CEO Wakiaga. The Association has thus urged KRA and NMS to cease the unnecessary increments of charges to businesses.