KRA to Enforce Taxes on Cereals Entering Nairobi

Traders of cereals supplying the commodity to the city will start paying cess to Nairobi County Government, effective March 11, 2022, the Kenya Revenue Authority (KRA) has announced.

The tax will be imposed by KRA officers stationed outside respective miller premises.

‘’Please take note that KRA and Nairobi City County Government shall with effect from March 1, 2022, commence collection of cess on cereals from products being brought into your members’ premises,” said the Commissioner for County Revenue Division Annastaciah Githuba in a letter to Cereal Millers Association.

The taxman added that the process will be undertaken by KRA officers in reflector jackets who will be stationed outside the premises of the millers.

This move could see a price hike in other commodities such as maize, rice, wheat, and other wheat products like bread. It is also bound to frustrate many Kenyans who are already struggling with the high cost of living.

Prices of commodities including bread have already gone up due to wheat supply shortages which have been attributed to the ongoing Russia-Ukraine war. The conflict has led to the closure of ports in Ukraine and disrupted supplies from Russia.

Maize is retailing at different prices across the major towns, with larger parts of Rift Valley such as Uasin Gishu county having the least amount of between 70 to 75 shillings per 2 kilograms. 90 percent of maize in Kenya is obtained from the rift valley region and this could cause a hit on the farmers from the region.

Meanwhile, the CMA move is targeting over 10 million consumers of maize flour and over 30 million consumers of wheat flour drawn from members operating mills in Mombasa, Machakos, Mwingi, Kitui, Nairobi, Thika, Nakuru, Uasin Gishu, Kitale, Kisumu, among others.

The price of common goods seems to be going higher and higher every day which means everyone should be prepared for tougher days ahead.

Article by Jane Muia