The Kenya Revenue Authority (KRA) has agreed to lower tariffs rate on wines, gin, and whiskies imported from the United Kingdom (UK).
The agreement was concluded during a meeting between Trade Cabinet Secretary (CS) Salim Mvurya and United Kingdom High Commissioner Neil Wigan.
According to the two, the move is a show of the Kenyan government’s commitment on the implementation of the Kenya- UK Economic Partnership (EPA).
Additionally, the CS indicated that that the decision will propel bilateral trade between the two countries and unlock new markets for export.
“The CS reiterated the government’s commitment on the current implementation of the Kenya- UK Economic Partnership which will boost bilateral trade and unlock new markets for value chains in the export sector,” a statement from the Ministry read in part.
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Details of KRA Reduced Tax on Alcohol from UK
Kenya has been charging a 35 percent tariff on alcohol from the UK in line with the East African Community Common External Tariff (CET).
However, Kenya’s tax collector has agreed to reduce this to 25 percent because of the Economic Partnership Agreement (EPA). The move came after the UK formally launched a complaint to Kenya over higher taxation.
Wigan argued that Kenyan exporters were benefiting from the partnership because the UK allowed duty free exports from the country. Therefore, it was important that the matter was resolved.
“In the same way that Kenyan exporters are benefiting from the (duty-free exports of) flowers to the UK, British companies will benefit from what we have resolved,” Wigan said during a press briefing after the meeting.
On the other hand, CS Mvurya stated that the UK government had also agreed to reduce the inspection rate for peas coming from Kenya from 10 percent to 5 percent.
“We will continue to work closely with the UK to ensure we grow our trade. The UK is making major investments in the country, including the Nairobi Railways City,
“Through the EPA Council, the UK government had agreed to reduce the inspection rate for peas originating from Kenya from 10% to 5%. Also, Kenya Revenue Authority has adjusted tariffs on whiskies imported from the UK to 25% in line with the EPA.”
Also Read: Kenya Signs Trade Deal with European Union
Details of the Agreement
Signed by President William Ruto, the Agreement opens duty-free (no taxes) and quota-free (unlimited exports) access for all Kenya’s exports to the USD 18 trillion EU market.
EU Commission in a statement on July 1 said the agreement will boost bilateral trade in goods, increase investment flows, and strengthen the ties between reliable partners.
The Commission further stated that the deal will facilitate mutually advantageous economic relations in a sustainable manner including stimulating job creation and economic growth.
“The EU-Kenya EPA is one of the most ambitious agreements negotiated between the European Union and an African country in terms of promoting economic sustainability. It can serve as a template for other African countries, particularly those in Eastern Africa to adapt,” read part of the statement.
Kenya and the UK originally signed the EPA in December 2020.
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