Farmers' group seeks tax waiver on machinery held at Port of Mombasa

 

Kenya Ports Authority gantry cranes offload containers at the Port of Mombasa container terminal on January 22, 2022. [Maarufu Mohamed, Standard].

A farmers’ cooperative society is pleading with the government to release equipment worth millions of shillings held at the Port of Mombasa over taxes.

The society claimed that the equipment has been at the port for over two years, derailing plans to instal an organic fertiliser processing plant to boost crop production.

The farmers appealed to the government to allow the equipment into the country, saying “unnecessary” duties have frustrated small-scale farmers’ efforts to establish a fertiliser processing plant.

The farmers petitioned the Ministry of Agriculture and President Uhuru Kenyatta to intervene and have equipment transported to Chesumei in Nandi, where they plan to establish the plant for organic fertilizer.

David Bett of Chebilat Organic Manure Processing Cooperative, said failure to release the equipment had left growers suffering.

“As a cooperative society, we raised funds to purchase manure processing machines from the US which are being held at the Mombasa port. The plant could have cushioned local farmers from hiked fertiliser prices in the region,” he stated

In 2020, the National Treasury imposed 14 per cent duty on imported agricultural implements.

Mr Bett wants the State to exempt farmers’ cooperatives from taxes.

Peter Kemei, a dairy farmer, claimed lack of affordable devices and farm implements negatively affected value addition in coffee, maize, and dairy farming.

“It’s too expensive for cooperatives to procure mechanisation implements to improve production and increase value for the crops. And soon farmers will do away with maize crop,” he said.

Kemei added: “Food security cannot be achieved unless the national and county governments encourage investors to set up industries which could assist local farmers to boost their earnings.”

The rise in farm inputs prices has forced the farmers to resort to value addition to mitigate production cost inflation. Coffee, dairy and maize farmers in Nandi have found it costly to initiate projects due to regulations imposed on machinery importation.

Nandi Governor Stephen Sang accused the government of undermining farmers cooperative societies and county agricultural projects initiated to boost production.

“The government should review the law and exempt farmers from taxes to enable them to purchase machines to process farm produce,” he stated.