Busia — The Kenya National Chamber of Commerce and Industry (KNCCI) has urged the national and county governments to harmonise intercounty taxes to avoid overcharging traders when transporting goods from one county to another.
Speaking in Busia County in a meeting of the consolidated KNCCI officials across the lake region economic bloc counties, the chairperson KNCCI Trans Nzoia County Martin Waliaula challenged both governments to support SMEs and business recovery by issuing single permits to avoid double taxation from one county to another.
“Most businesses are still recovering from the economic shock that emerged from the effects of Covid-19. The government must structure policies that provide a business-enabling environment,” noted Waliaula.
He added that despite these challenges, the government has introduced many permits and licenses that make it too expensive and unprofitable to traders.
“Traders are alarmed over a lot of money in form of cess and levies that are expensive,” Waliaula said.
His sentiments were echoed by Sylvanus Abugu KNCCI Busia chapter chairperson who reiterated that there is need for engagement with the government to amend some of the laws that prohibit businesses to flourish smoothly and policies that are blocking inter-county businesses and toxic tax regimes.
“The cross border traders are lamenting over double taxation from one county to another which makes the product more expensive and the consumers share the cost too. We will only lower the cost of living if we harmonize taxes,” said Abugu.
“KNCCI promotes, co-ordinates and protects commercial and industrial interests of our members and the country in general through establishing and organizing finance trade and industrial exhibitions that help market our products,” added Abugu.
KNCCI is set to enter into a Sh5 billion partnership with the Mastercard Foundation, a move that will give interest free grants to small businesses and cross border traders affected by Covid-19 Pandemic caution their businesses.
According to Rev. Harman Kasili chairman Lake Region Economic Bloc, the loans are part of the Micro, Small and Medium Enterprises (MSMEs), Covid-19 Recovery and Resilience Program targeting MSMEs impacted by the pandemic.
Eligible MSMEs for the funds are for youth aged between 18- 35 years and Women (18 -70 years) owned enterprises who are members of KNCCI.
“As a responsible organization, we at the Kenya National Chamber of Commerce and Industry took a deliberate decision early on to stand with our members and to help them pivot back to a position of growth,” Kabucho said.