Governor Barasa, western MPs oppose new sugar sector tax payment system

Kakamega Governor Fernandez Barasa has voiced his sentiments against the new sugar sector tax and payment charges.

Governor Barasa, who had joined the Muslims at Lugari Station Mosque during the Eid-Ul-Fitr celebrations on Wednesday urged members of Parliament to amend the respective provisions of the Finance Act, 2023, specifically those requiring farmers to pay additional taxes by registering on the e-TIMS platform.

The governor said Kakamega county's economy heavily depends on farming and the implementation of the new tax regulation will have significant adverse effects on the region.

The sugar directive mandates farmers to present e-TIMS invoices for every cane delivered to factories before receiving payment, a move opposed by Barasa and some leaders from the Western region.

The Kenya Revenue Authority (KRA) has mandated all sugarcane farmers to register on its tax payment platform, e-TIMS, effective April 1, 2024. Failure to comply would result in farmers being unable to sell their crops.

However, Barasa expressed opposition to the new tax law, demanding its suspension.

"This directive will affect sugarcane farmers, the majority of whom lack technological proficiency and do not even own smartphones," he said.

In a recent function, Navakholo MP Emmanuel Wangwe called on KRA to stop the plan saying it will overburden sugarcane farmers in the region.

He asked KRA to review its e-TIMS regulations and collect taxes from the company instead of inconveniencing farmers.

"The Western region at large depends on sugarcane farming and the directive by KRA will overtax farmers and disrupt timely payment of dues to farmers," he said.

Elsewhere Likuyani MP Innocent Mugabe argued that the move will only add to the burden the famers are already enduring and insisted that the government should look for alternative sources of revenue and not just taxation.

His Lugari counterpart Nabii Nabwera said MPs from Western Kenya would want to negotiate with the government to suspend the policy so that a better working mechanism is found.

Governor Barasa further urged the cane pricing committee to review their decision, which includes reducing the price of cane per tonne.

He emphasized the necessity of increasing the buying price to above Sh6,000 per tonne to ensure fair compensation for farmers.

Governor Barasa also urged the Agriculture and Food Authority (AFA)  to review its decision on pay and increase cane prices so farmers can recoup their investments.

The ceremony was attended by Deputy Governor Ayub Savula, MCAs led by the majority whip Benard Mulama, and county officials, among others.