The Kenyan government has committed to supporting traders in Nairobi to tackle ongoing market challenges in the country.
Deputy President Rigathi Gachagua and Cabinet Secretary for Investment, Trade, and Industry Rebecca Miano convened with representatives from various Nairobi markets at the Deputy President’s residence in Karen on Thursday, March 28 to discuss key areas of concern including taxation, counterfeit goods, import and export rebates.
Discussions also bordered on the efficiency of trade facilitation by regulatory bodies. There were a series of actionable recommendations.
Among these recommendations is implementing a fixed benchmarking fee of Sh2.5 million, reduced from the current Sh3 million, for all containers at the port to standardize costs and enhance transparency.
Additionally, stakeholders agreed to ensure that tax increases or policy revisions are not enacted without thorough consultation with the trading community and to prioritise the finalisation of the Trade Development Bill.
Deputy President Gachagua announced that negotiations between the Kenya Revenue Authority (KRA), Kenya Ports Authority (KPA), and shipping lines would be conducted to release withheld goods.
Importers will pay the initially agreed duty for the withheld containers, with KRA expediting clearance for release to traders by next week.
“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 will expedite clearance of the containers for release to the traders by next week,” he said.
Also, Gachagua disclosed plans for the Kenya Bureau of Standards (KEBS) and Anti-Counterfeit Authority (ACA) to coordinate efforts in clearing imported goods to expedite certification processes and issue certificates of compliance and conformity.
Cabinet Secretary Miano hailed the meeting as a significant milestone in creating a conducive trading environment in Kenya. She emphasised the importance of the recommendations, which emerged from constructive dialogue with the trading community, in addressing longstanding challenges.
“Today marks a significant milestone in our journey towards creating a more conducive trading environment in Kenya. The recommendations laid out, born from candid and constructive dialogue with our trading community, pave the way for a robust framework of cooperation, aiming to address and resolve the longstanding challenges faced by our traders.
“Our commitment to implementing these measures, in collaboration with all stakeholders, is unwavering,” said Miano.
The CS further reaffirmed the government’s commitment to implementing these measures collaboratively with stakeholders.
The meeting followed threats of protest by members of the Nairobi Business Community (NBC) over what they perceive as burdensome taxes imposed by the government. Traders expressed concerns about the high cost of living and the struggling economy, urging the government to be considerate.
Notably, traders highlighted challenges posed by taxes such as Kecobo’s blank tape levy, which they view as overly punitive. They emphasised the need for the government to support small-scale traders and alleviate their financial burdens amid economic challenges.