Eastleigh Traders Relocating To Other Countries-Shops Closed

Eastleigh Traders Association on Wednesday, April 3 closed down over 70 malls in a move to protest high taxes on ready-made garments terming the levies as exorbitant.

Some of the businessmen threatened to close their businesses for good and move them to neighboring countries as they claim the tax is lower in neighboring countries such as Tanzania and South Sudan.

Sheikh Ibrahim Hussein, chairman of the Eastleigh Business Community stated that KRA had increased the taxes on a 40-foot container from Ksh3 million to Ksh12 million.

“We have decided to close down malls and other shops until the Government listens to us. I do not know for how long this will be, but if the Government (KRA) calls us for talks, which we are ready for, and we resolve the matter even now, then we will reopen the premises,” stated Hussein.

Eastleigh Business Community chairman Ibrahim Hussein backed up by other officials reported that the businesspersons in the region had expressed their concerns claiming this move will “kill” their businesses.

The business community explained how they were counting losses as most of the containers were held at the port as they could not afford the new tariffs. The traders called for KRA to engage them in dialogue as they were willing to pay taxes as long as they were realistic.

“Let us dialogue as we are ready to pay taxes to the Government but let them be realistic ones. What we are opposed to is the increase in taxes without involving the stakeholders. Please engage us as we are also looking at making profits but if your idea is to chase us out of business then we are going nowhere,” Hussein added.

The levy is said to have affected over one million businesses as shoppers were forced to look for alternatives as the malls remained closed for a second day.

Hussein compared the tax system in Kenya with its neighbors claiming that the same 40-foot containers costs Ksh1.6 million in Tanzania, Uganda Ksh1.4 million and Ksh1 million for South Sudan despite the last two being landlocked and relying on the Mombasa Port for their imports.