KENYA – Githunguri Member of Parliament, Gathoni Wamuchomba, has voiced strong concerns about the potential adverse effects of the Finance Bill 2024 on Kenya’s poultry farming sector.

In a recent media interview, Wamuchomba highlighted that the proposed bill would allow East African Community (EAC) countries to export poultry products, including eggs, to Kenya without tariffs.

This duty-free policy could significantly disadvantage local poultry farmers.

Wamuchomba pointed out that neighboring countries, such as Tanzania, have a notable cost advantage in poultry production over Kenya.

The absence of tariffs would enable these countries to flood the Kenyan market with cheaper poultry products, creating fierce competition.

This situation could force many Kenyan poultry farmers to shut down their businesses due to their inability to compete on price.

The MP also observed a troubling trend where key players in the Kenyan poultry industry, including influential government and presidential figures, are relocating their operations to Tanzania and Uganda.

These countries offer a more favorable business environment, exacerbating the competitive pressures on local farmers.

Adding to the complexity, Wamuchomba noted that the Strategic Trade and Investment Partnership (STIP) agreements between certain EAC countries and the United States further complicate the issue.

These agreements allow the US to export processed poultry products to EAC countries duty-free.

Consequently, EAC countries can re-export these US poultry products to Kenya without incurring taxes, effectively undermining Kenyan poultry production.

Wamuchomba expressed particular concern that non-EAC countries are exploiting these trade agreements for their gain.

These nations, benefiting from STIP arrangements, import US poultry products and then leverage the EAC’s duty-free framework to export to Kenya.

The Finance Bill 2024, presented by the Chairperson of the Finance and National Planning Committee of the National Assembly on May 13, 2024, proposes amendments to various tax laws, including the Income Tax Act, VAT Act, Excise Duty Act, Tax Procedures Act, and the Miscellaneous Fees and Levies Act.

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