Shops and bars make very little sales, he told officials of the East African Community and Regional Development Ministry
Image: FILE
Kenyans living in Busia town are crossing into Uganda to buy goods and services at cheaper prices.
Busia Deputy Governor Moses Mulomi on Tuesday said the difference in taxation between Kenya and Uganda was hurting the economy of the western county.
He said traders had deserted buildings as they can no longer afford to pay for the premises amid dwindling business fortunes.
Shops and bars make very little sales, he told officials of the East African Community and Regional Development Ministry.
Addressing the press after meeting with the officials, Mulomi called for a review of taxation regimes among EAC partner states.
“In your ministry, you have put clearly taxation safeguards for both countries as management of exchange goods. Beer consumers are forced to cross to Uganda where a bottle costs Sh100 compared to Sh200 in Kenya," Mulomi told the delegation led by ministry director Juma Wakhungu.
He called for the harmonisation of taxation with border countries to reduce the rush for cheaper goods and services across the border to save the economy of counties.
Mulomi said Busia cannot meet its revenue targets because of the restriction from collecting revenue from trailers. He said low revenue collection was to blame for the county's reduced equitable share from the Treasury.
“Border counties need special funds to compensate for the lost revenue arising from regional treaties which are passed without consulting the regional governments,” he said.
Wakhungu said the delegation was in Busia to inform the county about the proposed Sh600 million Jumuiya cross border market. If implemented, the proposal will spur economic development across partner states, Wakhungu said.
Mulomi said studies had shown most trading activities at the Amudat and Sio Port border were carried out on the Ugandan side.
He said the county government welcomes plans for the ultramodern market in Busia. The deputy governor also called for the dualisation of the Busia border highway to Korinda to be undertaken without delay.
The project is funded by the British Government. Mulomi said money was already paid for the project.
Mulomi asked the Kenya Rural Roads Authority to also expedite the tarmacking of Public Works-Alupe road and Kenya National Highway Authority to tarmac the Mundika-Customs bypass for use by trailers en route to Uganda to ease congestion in Busia central business district.
edited by peter obuya