Traders in Eastleigh are counting losses amid high cost of doing business, as the government piles taxes on the public.
The businessmen are considering relocating their businesses to Tanzania, adding that the business environment in the neighboring country is friendly.
Hajj Hassan, a member of the Eastleigh Business Traders Association, while addressing the challenges faced by traders, highlighted that the government failed to conduct public participation about taxation increase.
Further, the Eastleigh Business Traders Association members claimed that the tax on a container of imports has reached Ksh3 million, up from Ksh1.7 million in 2017 making it impossible to sell anything.
Eastleigh Traders Outcry
“This year alone, the government has increased taxes twice, from Ksh2.8 million to Ksh3 million per container in June and from Ksh3 million to Ksh4.4 million per container in July,” stated the official.
Also Read: Don’t be Fooled, Kenya Doing Better than Tanzania – Opposition Chief
Additionally, Hassan noted that the high taxation has pushed many traders in the bustling business hub to mull shifting base to neighboring countries.
“Our business community has brought us a number of complaints, complaining about taxation increases without any public participation,” said Hassan.
Relocation to Tanzania
On the other hand, the businessmen noted that most of their customers are from neighboring countries but due to the over taxation in Kenya majority of their customers have moved to Tanzania hence the low sales.
“We were not only selling our goods to Kenyans only but also Rwanda, Congo, Tanzania, South Sudan, Ethiopia, but all of them have left because taxation in their country is better,” stated a member.
Likewise, the businessowners justified their plan to relocate to Tanzania citing the country as a favorable business destination.
Meanwhile the traders explained that among the members of the East African Community, tax rates on imported goods in a single container are lower than in Kenya.
Also, they cited that the same products were passing through the Kenyan port and that should have been a better price in Kenya instead.
Also Read: Real Zakayo: List of Taxes Ruto Imposed on Kenyans After Being Sworn-in
Neighboring Countries Prices
“For example, Tanzania charges between Ksh700,000 and Sh1 million per container, while Uganda, which transits its goods through Mombasa port, taxes the same container at Ksh2.5 million,” stated the members.
“This has forced our local traders to relocate their businesses to neighboring East African countries. This has had a negative impact on our economy,” said Mr Hassan.
