Githunguri Member of Parliament (MP) Gathoni Wamuchomba has raised concerns over the impact of the Finance Bill 2024 of poultry farmers in the country, stating that it will kill businesses.
Speaking during a media interview, she lamented that the proposed bill would allow nations within the East African Community (EAC) to export eggs and other poultry products duty free into the country.
Wamuchomba explained that the production cost of poultry products in Tanzania for instance, costs less compared to Kenya, therefore the exports will lead to stiff competition with the local market.
Ultimately, she said that it will force local farmers to pull out of the competition and give up on their poultry businesses.
“The big players of poultry are now relocating including some of the people we know in the executive and the presidency. They have moved their poultry farms to Tanzania and Uganda,” she said.
Also Read: Wamuchomba Questions Ruto’s Ksh471 B Expressway, Picks Areas U.S. Aid Should Focus
Wamuchomba on US Dumping Chicken Legs and Heads in Kenya
At the same time, the MP explained that there were other EAC nations who had concluded their agreement with the United States under the Strategic Trade and Investment Partnership (STIP).
This means that under the partnership, the US is allowed to export finished poultry products to the EAC nations. In turn, because of the tax exception, the countries will be allowed to export those products to Kenya.
“Countries outside the EAC treaty that are enjoying advantages from other blocks that have allowed STIP, where those countries allow finished poultry products within their country.
“Therefore, because they are enjoying the EAC tax exemption on poultry, they will bring those products into the country. That means we have created a new pathway to bring those products into the country through shortcuts.
“STIP allows the US to dump their finished poultry products into Kenya, meaning the head and feet and other parts of the chicken that are not heavily consumed in the US,” she explained.
Also Read: Wamuchomba’s Fiery Speech That Stole the Show in Limuru Three
Kenya on the STIP Deal
A publication from Washington by the US Government on May 17, indicated the conclusion of the fifth round of negotiations under the United States – Kenya Strategic Trade and Investment Partnership (STIP).
The discussion between United States Trade Representative Katherine Tai and Kenya’s Cabinet Secretary for Investment, Trade, and Industry Rebecca Miano renewed their commitment to work to conclude an agreement by the end of the year.
“They agreed that the two sides have made significant progress in several areas, including on anticorruption; micro, small, and medium-sized enterprises (MSMEs); services domestic regulation; and the first tranche of agriculture text.
“These provisions are designed to facilitate agricultural trade and advance food security; prevent and combat bribery and other forms of corruption; empower MSMEs in both economies; and ensure that service suppliers are treated fairly and in a transparent manner,” detailed the statement.
STIP was launched in July 2022 and the United States and Kenya began conceptual discussions in Washington, DC, in February 2023.
Follow our WhatsApp Channel for real-time news updates.
https://whatsapp.com/channel/0029VaB3k54HltYFiQ1f2i2C