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Turkey urged to cut duty on Kenyan tea

BUSINESS
By Moses Michira | February 1st 2019
Moses Mwangi a tea farmer, on his farm at Tetu in Nyeri County. [Kibata Kihu/Standard]

Kenya is seeking a review on the taxation schedule with Turkey to lower entry barriers for local tea exports.

This is aimed at raising the two nations’ annual trade volumes to Sh100 billion. Currently, Kenyan tea exports to the European country are subjected to a punitive 125 per cent tax, which more than doubles the landed price and discourages consumption.

In essence, import duty worth Sh125 million would be slapped on tea valued at Sh100 million exported to Turkey, with the costs passed to the consumers, effectively making it more expensive than other imports.

Reduction of the steep tariff was at the top of the agenda of a bilateral trade meeting hosted by the Kenya National Chamber of Commerce and Industry (KNCCI) in Nairobi on Wednesday attended by over 300 business leaders from both countries.

KNCCI Chairman Kiprono Kittony decried the low trade volumes between the two countries that remain below Sh20 billion despite calls to raise the trade to above Sh100 billion.

“Kenyan exports to Turkey can increase if products such as Kenyan tea can access Ankara,” said Kittony.

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