A video showing residents in Kandara Constituency, Murang’a County chasing away Kenya Revenue Authority (KRA) officers from a sensitization meeting on eTims has sparked a debate among Kenyans on social media.
Officers from the Revenue Authority had convened a session to educate avocado farmers on how to pay taxes for their avocado sales through the eTims system.
In one of the videos from the session, the officers were seen trying to explain that henceforth avocado farmers selling their produce will be required to provide eTims receipts.
Every time a farmer sells the fruits, according to KRA, a receipt showing the particulars of the sale should be kept for reference by the taxman.
They also explained that the requirement was not only targeting avocado farmers in the county but also several other informal businesses including ‘mama mbogas’.
“Previously you were selling your avocados without providing receipts, but right now you will be required to produce receipts which will be presented to KRA,” one of the KRA officers explained in the gathering that took place on Monday, February 27, in Kandara.
“The taxes are not only targeting avocado farmers, it is also affecting various farmers and mama mbogas across the country.”
But the explanation sparked jitters among the farmers present who voiced their reservations against the proposed changes requiring them to offer receipts for their sales.
Then suddenly, the session KRA officers had hoped would run smoothly for the benefit of the farmers turned rowdy, forcing them all to scamper for safety.
Leaders reject KRA tax policy
Leaders from the region, among them Gatanga Member of Parliament Walkili Muriu have since come out to reject the requirements, vowing to oppose them to the core.
Gatanga MP Wakili Muriu while addressing his constituents was heard poking holes into the new tax policy, questioning why the government had resolved to tax avocados at the production stage.
Also Read: Ruto Pressured to Stop KRA from Raiding Homes & Businesses
According to him, the move to tax avocado farmers would be a step back for the region’s agriculture.
He used the example of oil business around the world which he explained that governments do not tax oil at its production but consumers in their respective countries pay taxes for the products.
“As the people of Kandara and Gatanga have refused to pay taxes on avocados,” Wakili Muriu said.
“As an MP who makes law, I can tell there is a problem with this proposal. We are the aggregators; the aggregator should be the farmers. These avocado taxes should be imposed on the consumers. The 3% tax should be carried in by the exporter.”
Also Read: KRA Collects Billions as Kenyans Rush to Avoid Paying Ksh209 B in Penalties
Muriu’s role in Finance Bill questioned
But Kenyans commenting on the development around avocado taxes have since turned the heat on the Gatanga lawmaker, questioning his role and stance when the Finance Act of 2023 was passed in Parliament which was the genesis of several new tax policies.
In a National Tax Policy draft released in January 2024, Treasury Cabinet Secretary Prof Njuguna Ndung’u mentioned plans to target the informal sector and farmers as some of the hard-to-tax sectors in a bid to enhance revenue generation.
Prof Ndung’u in his document explained that state was looking to enhance taxation in the agricultural sector with measures including introduction of presumptive tax.
