Moses Michira
Kenya is seeking a review on the taxation schedule with Turkey to lower entry barriers for local tea exports.
This is aimed at raising the two nations’ annual trade volumes to Sh100
billion. Currently, Kenyan tea exports to the European country are
subjected to a punitive 125 per cent tax, which more
than doubles the
landed price and discourages consumption.
In essence, import duty worth Sh125 million would be slapped on tea
valued at Sh100 million exported to Turkey, with the costs passed to the
consumers, effectively making it more expensive than other imports.
Reduction of the steep tariff was at the top of the agenda of a
bilateral trade meeting hosted by the Kenya National Chamber of Commerce
and Industry (KNCCI) in Nairobi on Wednesday attended by over 300
business leaders from both countries.
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KNCCI
Chairman Kiprono Kittony decried the low trade volumes between the two
countries that remain below Sh20 billion despite calls to raise the
trade to above Sh100 billion.
“Kenyan exports to Turkey can increase if products such as Kenyan tea can access Ankara,” said Kittony.
Moses Mwangi a tea farmer, on his farm at Tetu in Nyeri County. [Kibata Kihu/Standard]
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