Hundreds of small importers have been left in a tight spot after the Kenya Revenue Authority (KRA) confiscated their goods as a tax amnesty pledge from State House failed to materialise.
Nairobi Importers and Small Traders Association (NISTA) officials said goods worth billions of shillings are now facing auction in the ensuing stalemate after the State appointed a multi-sectoral agency to tackle tax evasion, importation of contraband and substandard goods among other illegal activities.
The goods, estimated to be worth Sh12 billion, were seized in July and have been lying at various ports of entry despite President Uhuru Kenyatta’s promise to waive storage costs and pave the way for their immediate release.
NISTA chairlady Anne Nyokabi said Monday that the traders will take to the streets tomorrow (Wednesday) to avert the imminent auction of their goods even as she pleaded with the government to honour its pledge.
“We were offered an unrestricted amnesty period to clear our goods. But many containers are still seized at the port and the inland container depot. The amnesty was definitely a hoax,” said Ms Nyokabi.
The importers two months ago met KRA and Kenya Bureau of Standards (Kebs) officials in the presence of Mr Kenyatta’s Chief of Staff, Nzioka Waita, to unlock the stalemate.
The contested goods had been held at the port after the government tightened importation rules to stem inflow of illicit and counterfeit goods.
The government committed to offer a 100 per cent waiver on container freight station charges, local Carrier Own Container charges, and demurrage charges.
KRA had at the time told traders that the Treasury had dispatched a letter to shipping lines confirming the government’s commitment to take care of costs arising from the delays.
But Monday, the traders showed the Business Daily a list of containers that had been earmarked for auction in the next two weeks.
“Out of difficulties in clearing of the said goods and the fact that the government is non-committal in facilitating clearance, an auction has been approved,” said Ms Nyokabi.
Ms Nyokabi said that many NIA members, who had secured loans to import goods, have been unable to order fresh stock.
The teaming up of KRA, Kebs and Anti-Counterfeit Agency (ACA) to form a multi-agency unit in the fight against importation of substandard goods and tax evasion, has rendered many importers incapable of getting through the ports of entry.
Small importers have particularly been affected by KRA’s directive that any counterfeit or concealed goods found in a container leads to forfeiture and destruction of entire consignments.
Most small traders import their goods in shared containers that are cleared as single consignments.
However, the three agencies have stuck to their guns, managing to nab illicit and counterfeit goods valued at Sh8.5 billion during the period between May and early October.
This points to rampant losses in tax revenues as well as a health scare to the public.
Last week, ACA executive director Elema Halake said that about 40 per cent of Kenya’s market share is dominated by counterfeit products, costing government billions in foregone tax revenue.
Mr.President start with retiring Njiraini,he is th enemy of SMEs
He is killing trade in Kenya,small traders can’t import commodities peacefully,please pay a visit to traders and hear heart breaking stories-first hand,please do that! https://t.co/YtM5R9rjmZ
— Abu Sakeena (@FauzKhalid) October 16, 2018