Govt Reverses Tax Orders, Issues 5 New Directives After Gachagua Meeting


Govt Reverses Tax Orders, Issues 5 New Directives After Gachagua Meeting

Following a strong objection from traders from Nairobi County, the government has rescinded the increase of import duty by Ksh500,000.

The Office of the Deputy President  stated that traders expressed their dissatisfaction with the tax hike from Ksh2.5 million to Ksh3 million.

The Deputy Principal (DP), Rigathi Gachagua, observed that the traders conveyed their dissatisfaction with the rise, highlighting the adverse impact it had on numerous firms.


Conversely, Gachagua instructed the taxman to seek advice from traders before implementing any new tax policies.

“The government also reversed the decision on the increment of import duty from Sh2.5 million to Sh3 million on each container. This is after the traders complained that the extra Sh500,000 was not justified and that they were not involved.

“The Deputy President also said the traders will be issued with a single certificate of conformity and compliance from the Anti-Counterfeit Authority and Kenya Bureau of Standards instead of double inspection of goods by the two State agencies,” read the statement in part.

The majority of traders impacted were those engaged in the importation of electronics, pre-owned garments, motorcycle spare parts, textiles, stationery, computers, and ICT equipment.

In addition, the DP instructed government institutions, such as the Anti-Counterfeit Agency, to address allegations of officials soliciting bribes from traders.

There were allegations that certain officials have a tendency to request the examination of containers in order to detect counterfeit merchandise.

Police officers who have accumulated more than three years of service at different inspection centres will also undergo a transfer process.

“It was agreed that, henceforth, the Anti-counterfeit body will involve traders in the verification and inspection of their goods and that KRA will not introduce levies or import duty on goods without public participation with the stakeholders.

“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 to expedite clearance of the containers for release to the traders by next week,” the DP stated.

Following a meeting between the DP and traders from Gikomba, Muthurwa, Luthuli Avenue, CBD, and River Road at his Karen residence, the new measures were announced.

A subsequent meeting is scheduled on April 10th to assess the execution of the newly implemented measures.

In Other News: Politician Detained For 14 Days In Ksh.24M Gold, Mercury Scam

Govt Reverses Tax Orders, Issues 5 New Directives After Gachagua Meeting



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