Manufacturers decry new levies by KRA, city bosses

Phyllis Wakiaga, CEO Kenya Association of Manufacturers (KAM). [Wilberforce Okwiri, Standard]

The manufacturer’s lobby, the Kenya Association of Manufacturers (KAM) has protested the new landing charges imposed on livestock delivered to the capital city from counties outside the jurisdiction of the Nairobi Metropolitan Services (NMS).

The lobby group is also against the export levy introduced in the proposed changes to food safety and export processes, through the NMS export certification.

"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,” said KAM Chief Executive Phyllis Wakiaga.

“The overall cost of doing business in this case undoubtedly falls on the buyer — the citizens.”

Wakiaga said the proposal to introduce the export levy goes outside of the public health inspection mandate of the NMS.

KAM said the new costs not only render the manufactured goods uncompetitive but also exacerbate an already dire situation as Kenyans struggle to make ends meet.

This year projects a lot of uncertainty for businesses, as the country re-emerges from the disruption of the pandemic, with the August 9 polls creating further uncertainty.

“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,” Wakiaga said.

As such, KAM has urged Kenya Revenue Authority and NMS to cease the increments of charges.