Promote EAC trade, reduce taxes – CS

Taxation by county governments on transit goods is holding back plans to eliminate trade barriers between East Africa Africa Community countries, Cabinet minster Peter Munya said at the weekend.

The Cabinet Secretary for East African and Northern Corridor Development said said double taxation will stiffle the growth of the East African economic market.

“I want to ask the county governments to stop double taxation on the trucks that are on transit, that is not in the constitution,” he said.

Munya was speaking in Kitale during a sensitisation workshop for Members of County Assembly drawn from Trans Nzoia, West Pokot, Busia and Turkana which are border counties on EAC trade rules.

He urged counties to minimise roadblocks that hinder movement of goods from the port of Mombasa to other East African countries saying that summit decisions stipulates that unnecessary roadblocks should be avoided on international highways.

“It is very clear that there should be no roadblocks on international highways that’s a decision by the summit that must be adhered to, this is causing a lot of delays,” he said.

The minister said only gazetted roadblocks placed to enhance security should be in place.

He said that as a result of the roadblocks which lead to time wastage, other countries with similar goods are edging out Kenya from its traditional regional markets an advantage that Kenya has been enjoying with the signing of the East African free trade.

He said that faster movement of goods from the Mombasa port will enable Kenya to compete with the other East African ports and enhance growth.

Munya said Kenya is losing its regional trade to neighbouring countries because of the challenges that hinder free and faster movement of goods.

He said instead of targeting transit goods, counties should create conducive facilities at the border can promote trade which will earn them more revenue.

He said Kenya exports 25 per cent of goods and services to the East African countries and this remains the most important market for Kenya’s exports.

“Last year we exported Shillings 114 billion worth of goods and we have plans of improving the market and getting better,” he said.

He said the one-stop border points at Busia,Namanga,Isebania and Taveta has cut the time spent by vehicles carrying transit goods by 60 per cent.

Munya said more stop border points will be build at Suam border in Trans Nzoia which links the country to Uganda, at Moyale which links the country with Ethiopia and Nandapal and Lungalunga within the next three years.

Principal Secretary Susan Koech said the government will support border counties to ensure that EAC vision is realised.