Farmers to pay Sh5 for every Sh100 they make in tax plan

Mercy Wangechi plucking tea at her farm in Nyeri. [Kibata Kihu, Standard]

Farmers around the country will part with at least Sh5 for every Sh100 they make in new radical revenue-raising proposals by the Kenya Kwanza administration.

The President William Ruto administration reckons its newly published proposals for expanding the tax base among farmers are timely as according to it farmers have not been paying their fair share of taxes.

"The Government will introduce a withholding tax on agricultural produce which will be a final tax at a rate not more than 5 per cent of the value of the produce delivered to the cooperatives or other organised groups," says Treasury.