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    Kenyan SMEs to benefit from Sh11 billion support from UK’s CDC Group

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    Kenyan PR agency bags international award

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    Reprieve for Kenya as China says this about its loans

    Reprieve for Kenya as China says this about its loans

    Emirates among first airlines to try IATAs’ digital platform for COVID-19

    Emirates among first airlines to try IATAs’ digital platform for COVID-19

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    Tatu City partners with Konza to attract investors to Kenya

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    Kenyan PR agency bags international award

    Kenyan PR agency bags international award

    Startimes land broadcast rights for Continental showpiece

    Startimes land broadcast rights for Continental showpiece

    Israel set to showcase agricultural innovations in Embu

    Israel set to showcase agricultural innovations in Embu

    Emirates among first airlines to try IATAs’ digital platform for COVID-19

    Emirates among first airlines to try IATAs’ digital platform for COVID-19

    Moet & Chandon ink partnership with premier restaurant Oysters & More

    Moet & Chandon ink partnership with premier restaurant Oysters & More

    Sarova introduces new brands as it diversifies into standalone restaurants

    Sarova introduces new brands as it diversifies into standalone restaurants

    Tatu City Partners with Konza to Attract Investors to Kenya

    Tatu City Partners with Konza to Attract Investors to Kenya

    LG unveils premium monitors

    LG unveils premium monitors

    Price of bread rises to Ksh55

    Price of bread rises to Ksh55

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    Tatu City partners with Konza to attract investors to Kenya

    Tatu City partners with Konza to attract investors to Kenya

    Tatu City Partners with Konza to Attract Investors to Kenya

    Tatu City Partners with Konza to Attract Investors to Kenya

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    National Bank and Octagon ink 100 billion service partnership

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    Mizizi Africa Homes voted best low cost housing developer 2020

    Mizizi Africa Homes voted best low cost housing developer 2020

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    Cytonn Hands Over Phase III of Comprehensive-Lifestyle Project, The Alma

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    32% of Kenyans to change houses over Covid-19

    Kenyan Firm awarded Most Innovative Community Developer 

    Cytonn Real Estate completes The Alma Phase 3; 120 units set for handover

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    Serviced Apartments Record Decline in Rental Yields

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    LG unveils premium monitors

    LG unveils premium monitors

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    Pesalink appoints Gituku Kirika as CEO

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    Samsung Galaxy S21 is now out,pre orders open in Kenya

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    Samsung banking on technology personalisation to increase market share

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    Millions Abandon Whatsapp over new Contentious Policy, Signal, Telegram record growth

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    Defiant: Words such as ‘China virus’, ‘impossible Paris climate deal’ mark Donald Trump’s speech as he bids farewell to USA

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    Kenyan PR agency bags international award

    Kenyan PR agency bags international award

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    Kenyan Scientists Discover New Coronavirus modification

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    Israel set to showcase agricultural innovations in Embu

    KCB, MoH and Kazi kwa vijana biggest advertisers in the past 5 months

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      Mastercard, Unilever and KCB Bank strengthen partnership to support micro-retailers in Kenya

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      Employment Exit Strategy: The smart way to leave job for entrepreneurship.

      Employment Exit Strategy: The smart way to leave job for entrepreneurship.

Kenyan Business Feed
  • Home
  • News
    Kenyan SMEs to benefit from Sh11 billion support from UK’s CDC Group

    Kenyan SMEs to benefit from Sh11 billion support from UK’s CDC Group

    Kenyan PR agency bags international award

    Kenyan PR agency bags international award

    Startimes land broadcast rights for Continental showpiece

    Startimes land broadcast rights for Continental showpiece

    Kenyan Scientists Discover New Coronavirus modification

    Kenyan Scientists Discover New Coronavirus modification

    Israel set to showcase agricultural innovations in Embu

    Israel set to showcase agricultural innovations in Embu

    Dandora dumpsite to produce electricity through a waste-to-energy plant model

    Dandora dumpsite to produce electricity through a waste-to-energy plant model

    Reprieve for Kenya as China says this about its loans

    Reprieve for Kenya as China says this about its loans

    Emirates among first airlines to try IATAs’ digital platform for COVID-19

    Emirates among first airlines to try IATAs’ digital platform for COVID-19

    Tatu City partners with Konza to attract investors to Kenya

    Tatu City partners with Konza to attract investors to Kenya

  • Markets
    Kenyan PR agency bags international award

    Kenyan PR agency bags international award

    Startimes land broadcast rights for Continental showpiece

    Startimes land broadcast rights for Continental showpiece

    Israel set to showcase agricultural innovations in Embu

    Israel set to showcase agricultural innovations in Embu

    Emirates among first airlines to try IATAs’ digital platform for COVID-19

    Emirates among first airlines to try IATAs’ digital platform for COVID-19

    Moet & Chandon ink partnership with premier restaurant Oysters & More

    Moet & Chandon ink partnership with premier restaurant Oysters & More

    Sarova introduces new brands as it diversifies into standalone restaurants

    Sarova introduces new brands as it diversifies into standalone restaurants

    Tatu City Partners with Konza to Attract Investors to Kenya

    Tatu City Partners with Konza to Attract Investors to Kenya

    LG unveils premium monitors

    LG unveils premium monitors

    Price of bread rises to Ksh55

    Price of bread rises to Ksh55

  • Real Estate
    Tatu City partners with Konza to attract investors to Kenya

    Tatu City partners with Konza to attract investors to Kenya

    Tatu City Partners with Konza to Attract Investors to Kenya

    Tatu City Partners with Konza to Attract Investors to Kenya

    National Bank and Octagon ink 100 billion service partnership

    National Bank and Octagon ink 100 billion service partnership

    Real Estate: Cytonn invites bids for this 4 acre piece of prime land in Kilimani

    Mizizi Africa Homes voted best low cost housing developer 2020

    Mizizi Africa Homes voted best low cost housing developer 2020

    Cytonn Hands Over Phase III of Comprehensive-Lifestyle Project, The Alma

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    32% of Kenyans to change houses over Covid-19

    32% of Kenyans to change houses over Covid-19

    Kenyan Firm awarded Most Innovative Community Developer 

    Cytonn Real Estate completes The Alma Phase 3; 120 units set for handover

    Serviced Apartments Record Decline in Rental Yields

    Serviced Apartments Record Decline in Rental Yields

  • Tech
    LG unveils premium monitors

    LG unveils premium monitors

    Pesalink appoints Gituku Kirika as CEO

    Pesalink appoints Gituku Kirika as CEO

    Samsung Galaxy S21 is now out,pre orders open in Kenya

    Samsung Galaxy S21 is now out,pre orders open in Kenya

    realme C12 and 7i now Available In Kenya

    2021: realme to release more smartphone in Kenya

    Samsung banking on technology personalisation to increase market share

    Samsung banking on technology personalisation to increase market share

    Cellulant CEO Ken Njoroge to step down in 2021

    Millions Abandon Whatsapp over new Contentious Policy, Signal, Telegram record growth

    Millions Abandon Whatsapp over new Contentious Policy, Signal, Telegram record growth

    Whatsapp to block users this February following new policy

    Whatsapp to block users this February following new policy

    Tough times ahead as taxis set to increase fares

    Tough times ahead as taxis set to increase fares

  • World Business
    Defiant: Words such as ‘China virus’, ‘impossible Paris climate deal’ mark Donald Trump’s speech as he bids farewell to USA

    Defiant: Words such as ‘China virus’, ‘impossible Paris climate deal’ mark Donald Trump’s speech as he bids farewell to USA

    Twitter CEO finally breaks silence about banning US President Donald Trump from the platform

    Millions Abandon Whatsapp over new Contentious Policy, Signal, Telegram record growth

    Millions Abandon Whatsapp over new Contentious Policy, Signal, Telegram record growth

    Trump threatens to slash US funding to World Health Organization

    A year later, WHO still insists on visiting China to probe virus origin

    F1 superstar to miss Sakhir GP after testing positive for coronavirus – Statement

    F1 superstar to miss Sakhir GP after testing positive for coronavirus – Statement

    Boeing’s 737 Max Cleared to Fly in the US After Crashes

    Boeing’s 737 Max Cleared to Fly in the US After Crashes

    Guinness forced to recall contaminated brand

    Guinness forced to recall contaminated brand

    WTA Names Kenya as Africa’s Leading Tourist Destination 2020

    WTA Names Kenya as Africa’s Leading Tourist Destination 2020

    United States: Close Contest as Trump Declares himself Winner

    United States: Close Contest as Trump Declares himself Winner

  • KBF
    • All
    • Agribusiness
    • Banking
    • Insurance
    • Manufacturing
    • Opinion
    Kenyan PR agency bags international award

    Kenyan PR agency bags international award

    Kenyan Scientists Discover New Coronavirus modification

    Kenyan Scientists Discover New Coronavirus modification

    Israel set to showcase agricultural innovations in Embu

    Israel set to showcase agricultural innovations in Embu

    KCB, MoH and Kazi kwa vijana biggest advertisers in the past 5 months

    Mastercard, Unilever and KCB Bank strengthen partnership to support micro-retailers in Kenya

    Reprieve for Kenya as China says this about its loans

    Reprieve for Kenya as China says this about its loans

    Emirates among first airlines to try IATAs’ digital platform for COVID-19

    Emirates among first airlines to try IATAs’ digital platform for COVID-19

    Tatu City partners with Konza to attract investors to Kenya

    Tatu City partners with Konza to attract investors to Kenya

    KRA Goes After Rich Individuals, Firms Over Sh250 Billion

    Digital Services Tax a desperate move caused by bad governance

    Wairegi leaves Britam after 40 years, in-comes Tavaziva Madzinga

    Wairegi leaves Britam after 40 years, in-comes Tavaziva Madzinga

    • Agribusiness
    • Banking
      KCB, MoH and Kazi kwa vijana biggest advertisers in the past 5 months

      Mastercard, Unilever and KCB Bank strengthen partnership to support micro-retailers in Kenya

      ‘Beware of fake currency’, CBK Warns

      Diaspora remittances rose by 11 per cent to Sh341 billion in 2020 – CBK

      6.5 million register new mobile money accounts in 2020 -CBK

      6.5 million register new mobile money accounts in 2020 -CBK

      SIB banks’ foreign investment arm records mild drop in returns

      SIB banks’ foreign investment arm records mild drop in returns

      DTB issues profit warning

      DTB issues profit warning

      How to join, get a loan from Metropolitan Sacco

      Stanbic Bank systems down over Christmas period

      Equity Restructures Ksh92 Billion Loans To cushion Customers Against COVID-19

      Equity Becomes first bank in Eastern and Central Africa to achieve trillion-shilling balance sheet

      Equity Group Appoints Christopher Newson as Non-Executive Director

      Equity Group Appoints Christopher Newson as Non-Executive Director

    • Insurance
      DigiTrust: ICEA Lion Group bets on technology in the rewarding money market field

      DigiTrust: ICEA Lion Group bets on technology in the rewarding money market field

      ICEA Lion Life appoints a new CEO

      ICEA Lion Life appoints a new CEO

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      Exposed: Insurance Company on The Spot for Fruatrating clients

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      Octagon feted in 2020 World Pension Summit Innovation Awards

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      What do you need to know before purchasing car insurance?

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      National Bank of Kenya Bags Global Recognition

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      DIB Awarded Best Islamic Bank in Kenya

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      20 out of 56 licensed insurers in Kenya fail capital test

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      OPINION: Managing the end-of-life of products to accelerate a circular economy in Kenya

      OPINION: Managing the end-of-life of products to accelerate a circular economy in Kenya

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      Fail or win? Mixed Reactions over Safaricom’s new logo

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      Employment Exit Strategy: The smart way to leave job for entrepreneurship.

      Employment Exit Strategy: The smart way to leave job for entrepreneurship.

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Uganda talks seek a common stand on tariffs

by Kenyan Business Feed
May 18, 2019
in KBF
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JAMES ANYANZWA

By JAMES ANYANZWA
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East African Community member states are meeting in Entebbe, Uganda, this week in a desperate attempt to agree on a common position on how to tax goods entering the region. This comes ahead of the regional budget reading set for June.

The EAC Heads of State, in February, directed the Council of Ministers to review the relevant rules and harmonise the common external tariff (CET) in three months. Implementation of a new tariff structure is behind schedule by almost two years.

Currently, finished goods imported into the bloc attract a duty of 25 per cent, intermediate goods 10 per cent and raw materials 0 per cent under the EAC’s existing three-band tariff structure, which came into effect on January 1, 2005.

In addition, there is a list of sensitive items such as sugar, wheat, rice, garments and milk, which attract higher duty of above 25 per cent with the aim of protecting local industries from competition.

The EAC Sectoral Council on Trade, Industry, Finance and Investment in a meeting held in Arusha in May 2016, directed the EAC Secretariat to finalise the comprehensive review of the CET by December 2016 for implementation from July 1, 2017.

But member states failed to meet this deadline, prompting a three-month extension to September 30, 2017, with implementation from July 1, 2018.

However, the revised deadline was also not met.

But even with the directive by the heads of state, the EAC partner states have again failed to reach a consensus in the past two consecutive meetings they held in Kigali and Dar es Salaam in March and April, respectively.

“The issues are still under discussion. I doubt they will agree on these issues before the budget, which is just one month away,” a government source privy to the ongoing discussions told The EastAfrican.

Principal Secretary in Kenya’s Department of Trade, Chris Kiptoo confirmed that no deal had been reached and that, “Negotiations are still going on.”

The EastAfrican has learnt that the partner states have not agreed on a proposal to introduce an additional fourth tariff band. They have also not agreed on which goods should belong to which band.

It has been proposed that all goods under the current three-band tariff structure be reclassified, with some being shifted to the fourth band whose tax rate is yet to be determined.

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The additional band is designed to cater for goods that are often imported as finished goods attracting a higher tariff of 25 per cent only to be used as a raw material, which attracts zero duty. Such goods include clinker, which is used in the manufacture of cement and palm oil.

It is also argued that excessive protection of sensitive goods should be removed so that the products are subject to competition as most member states have abused this window by asking for frequent stays of applications in order to import these products at lower duty.

The EAC Council of Ministers had agreed that removal of stays of applications and duty remissions should inform the comprehensive review of the three-band CET.

They also agreed that the special tax treatment accorded to sensitive items is not anchored in the EAC Customs law and is stifling intraregional trade.

Researchers at the UKAid-funded International Growth Centre agree and say the first step in the review of the EAC’s CET should be to phase out the “sensitive” items list.

“There are suggestions that the existing band structure has seen some goods placed in incorrect tariff bands,” said the researchers in a report dated November 2017.

They added that non-tariff barriers (NTBs) impede free movement of goods within the region and it is likely that the costs imposed by NTBs including poor trade facilitation, are substantially higher than those imposed by tariffs.

“While the discussion over the future direction of the CET is important, it should not overshadow the urgent need to address the full range of non-tariff measures, and to reduce trade costs,” they said.

According to the EAC Council of Ministers the stability of the EAC CET has been affected by the frequent stays of applications by the partner states, creating distortion and eroding the harmonisation of the tariff regime.

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