End double taxation to prosper businesses, KNCCI urges counties

The Kenya National Chamber of Commerce and Industry (KNCCI) has urged counties to harmonise levies to avoid overcharging traders when transporting goods from one county to another.

This follows complaints by traders that they part with a lot of money in form of cess and levies that are expensive.

KNCCI president Richard Ngatia said traders want an end to double taxation whenever they move from one county to the other.

“The complaints we have as traders are the so-called double taxation. We pay tax twice to move goods from Coast to Nairobi in other areas we pay thrice,” Ngatia said.

He said they want the counties to look into the issue of cess so that it can also be harmonised.

“As KNCCI we work with the government but at the same time advocate for our members where we think that business is going wrong for example laws in pending bills and making sure bottlenecks are removed so that businesses can prosper,” he said.

Ngatia spoke in Malindi  during a meeting with the National Governing Council and directors of KNCCI from the Coastal region on Friday.

The meeting was set to inform members on what transpired when KNCCI met the Kenya Association of Manufacturers, Kepsa, Senate standing committee on Trade and cabinet secretaries in Mombasa.

Ngatia said the three-day meeting held in Mombasa discussed issues of policies to support smooth business, tax, and brought together representatives of the investments trade and industry and cabinet secretaries including Cooperatives and SMEs CS Simon Chelugui, and his Tourism counterpart Penina Malonza.

“The reason for that meeting was to come up with solutions and recommendations to the Senate so that they can advocate for us, formulate policies that will be able to support the business environment,” he said.

Ngatia said some of the areas discussed include amendments to some of the laws that prohibit businesses to move on smoothly and policies that are blocking businesses between the inter-trade, blocking businesses and exports to other countries and tax regimes.

He thanked President William Ruto for creating room for a proper working relationship with the KNCCI and for introducing the Hustler Fund which he said will promote small-scale business by enabling traders to upscale their businesses.

The Governing Council members present were from Lamu, Tana river, Kilifi, Taita Taveta and Kwale.

He said their aim is to see how best they could interlink with the Senate, and National Assembly, approach business and support their members.

Ngatia said it was important for the Coastal region to understand the opportunities available in Africa to easily access them.

KNCCI Coast regional director Hassan Wario said they were happy for Ngatia's visit and his endeavour to ensure they have good relationships with counties.

He said there was a need to address the issue of inter-county taxes and cess as they have always been a barrier to business people.

“We also want the issues that affect traders more to be resolved so that they can have a conducive environment to do business,” he said

KNCCI Kilifi chapter chairman Majid Swaleh said many traders in different counties have problems with their governors which is not supposed to be the case as business people only thrive where there is harmony.

“Governors need to be happy because we are here to assist them, we pay most of the taxes, licences and rates so they should not make things difficult for us because that will also spell doom for counties too,” he said.

Swaleh urged the counties that are not cooperating with KNCCI to do so for harmony in businesses.

“We are not here as obstacles of the county, we are supposed to work together with them so that both the counties and traders can benefit, Swaleh said.

"What we need is the services, and what they need is money, we are ready to give them money for services but if they take the money with no services that is when conflicts will arise."