Pork, sausage prices to go up as Farmers Choice decries double-taxation

Farmers' Choice announces increased pork prices. [Courtesy]

Kenyans are likely to pay more for sausages, a popular breakfast delicacy, as from  February 1 after one of the leading sausage producers in the country announced a possible price hike.

This comes months since a group of pig farmers in Kiambu County formed an association to articulate their interests.

In a circular to all pig suppliers, Farmers’ Choice Pig procurement manager George Omari attributes the price increase to double taxation of the products’ landing fees and cess.

“The Kenya Revenue Authority (KRA), acting on behalf of the Nairobi City County Government on revenue collection, has directed that cess/landing fees for all livestock received at our slaughterhouse be paid to the county government. Regardless of whether the same has been paid in the county of origin,” Monari’s communication read in part.

In order to oblige to the new directive, Monari says Farmers' Choice will increase their prices starting Tuesday, so as to meet the requirements by Nairobi City County Government.

“We are however appealing the directive, noting that the decision results in increased cost of doing business for all stakeholders. We shall keep you informed of the outcome of our ongoing negotiations,” he added.

However, the firm says that negotiations with the county government are ongoing.

The county government and the pig farmers’ association are yet to officially communicate on the issue.

Even though the inception of devolution in 2013 was seen as a blessing, it has turned out to be the heartbreak of many entrepreneurs in the livestock business.

This is as a result of levies imposed by the county governments, which end up subjecting entrepreneurs and potential investors to double taxation.

The most hit are businesses operating in inter-counties, where the traders are forced to pay taxes in every jurisdiction they take their goods to, raising the cost of doing business.

On many occasions, traders have challenged county governments to do away with some of the cess charges, saying the levies contradict regulations set by World Trade Organisations and most commonwealth countries.

A number of them have pushed for the Kenya Revenue Authority (KRA) to be the single tax collector to avoid double taxation.

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