Eggs dealers count losses
A man sells eggs in Kampala City. Poultry farmers are crying foul over a 25 percent levy slapped on eggs by Kenya. Photo / File
What you need to know:
- Mr Sanya William, who trades in eggs at Sofia Village in Busia Town, at the weekend said: “The taxes have pushed the cost of doing business up, making the venture less profitable.”
Traders dealing in eggs at the Busia border are reporting low business and losses amid biting taxes imposed by the Kenyan government.
Fresh details indicate that Ugandan traders seeking to export eggs to Kenya must pay an import duty tax of KShs,3,000 (about Shs93,000) for each consignment, and another 25 percent for each tray of eggs, which further hikes their price and makes them less marketable and profitable.
The import duty is paid to the veterinary department, while the 25 percent tax is paid to Kenya Revenue Authority (KRA).
Mr Sanya William, who trades in eggs at Sofia Village in Busia Town, at the weekend said: “The taxes have pushed the cost of doing business up, making the venture less profitable.”
“Imagine, we buy eggs from our suppliers in Kampala at Shs10,000 per tray and sell it to Kenyan buyers at Shs10,500; but because of the tax, the price at which we sell is supposed to be at least Shs15,000, which is too high for the consumers.”
According to Mr Sanya, the tax has forced Kenyans, who have been their main customers, to lower the price at which they are buying from them a tray of eggs from KSh350 to KShs330, which is less than Shs10,500.
The double tax on eggs has also affected Kenyan nationals who are in the trade, according to Mr David Erulu, the chairman Busia cross border traders’ association-Kenya.
He said they were engaging the KRA and other agencies to have the levies dropped or reduced.
Ms Annet Auma, the coordinator of the East African Sub-Regional Initiative for women (EASSi) at Busia border, said Nairobi had imposed the taxes to protect her farmers from cheap eggs from Uganda.
“We have held a series of meetings with KRA officials and other Kenyan stakeholders about the “bad taxes”, but they said the policy was drafted in Nairobi and aimed at protecting their farmers,” she said.
