Busia traders have supported a proposal by Governor Sospeter Ojaamong to allow them to import essential Ugandan goods without paying taxes.
They say the hard economic times in Kenya and heavy taxation have frustrated businesses as few people can afford critical consumer products.
The traders told the Star on Sunday that the flow of vital goods such as food products should not be restricted.
The only responsibility of border authorities should be to ensure the products meet the minimum health quality requirements, they said.
“It could have been better if there was free movement of goods in both countries where Kenyan goods go to the Ugandan side of the border tax-free and vice versa,” Edith Mamai who runs a retail shop in Malaba town said.
If not, Ugandan goods will dominate the Busia market making the products from Kenya to lose the local market because imported products would be cheaper, Mamai said.
The tax-free importation proposal was made by Ojaamong on November 19, when he hosted a USAID Washington and Trade Mark East Africa delegation at his office in Busia.
The county chief said that there was a need for East African Community member states to allow business people at the border to enjoy tax exemptions.
Oliver Epale, a businessman dealing in construction material said the governor’s proposal was welcome because Kenya’s tax regime was unfriendly to local traders.
“The cost of Kenyan goods is high because of the rising taxes. This has forced people at the border to resort to buying goods from Uganda. Taxation is high in Kenya yet there is no value for the taxes we pay,” he said.
Ojaamong when he met the USAID delegation said his administration respects international treaties that embrace the seamless flow of trade at the Busia and Malaba border points.
He wondered why the East African Community treaty would allow for free movement of vehicles on either side of the border without restrictions while limiting the movement of essential goods.
“The national government should allow businessmen to transact their trade within the 20-kilometre buffer zone without being subjected to taxation,” the former Amagoro MP said.
He said border residents want to benefit from the EAC integration process, but the move not to allow the county government to collect revenue from transit trucks had created more harm than good to the economy of Busia.
Immaculate Oroni a milk and eggs’ seller in Malaba town said the governor’s proposal was welcome as it will ease the burden on consumers. She buys her eggs and milk from Uganda.
“Food is a vital commodity, why should it be overtaxed,” she asked.
A crate of eggs from Uganda according to Oroni retails at Sh290 while that bought in Kenya costs Sh310.
A carton containing 12 packets of milk purchased in Uganda costs Sh470 while in Kenya the same sells at between Sh520 and Sh550.
The Director Kenya Chamber of Commerce and Industry in Busia county Fred Papa said the East African Community was to benefit all people from the region.
“Essential good like those consumed should not be taxed and this should apply for businesses in Kenya and Uganda. We also need a centralised system where local importers are not double-taxed,” he said.
