CS Reveals How Government Reduced Taxes For Select Kenyans

Trade Cabinet Secretary (CS) Rebecca Miano has disclosed that the government has managed to remove VAT on all tea purchased from local factories.

In a statement on Monday, June 17, the CS noted that the move was meant to encourage farmers to pursue value addition to their products.

Miano further intimated that the government was intentional in increasing local production after successfully negotiating for wider markets for the product.

"We remain intentional on doubling exports and increasing our local production. Our efforts to support the key economic sectors has seen the earnings from tea exports in the first five months of the year increased by 28 per cent compared to the same period last year.

"In addition to successfully negotiating for wider markets for our produce and championing value addition initiatives, we've managed to remove VAT on all teas purchased from local factories for value addition to encourage our farmers to pursue value addition to their products," Miano stated.

The CS added that there were more incentives and initiatives in the proposed Finance Bill, 2024, that will improve the agricultural sector. 

The move comes after the Cabinet, on the other hand, approved the payment of a KSh6.8 billion debt owed by coffee farmers.

The Cabinet directed coffee co-operatives, saccos and other creditors to submit to the Ministry for Co-operatives the list of all farmers who owe them money within seven days.

Public Service Cabinet Secretary Moses Kuria said on Saturday, June 15, that the farmers were to be paid starting this week.

"Good News to Coffee Farmers. The Ksh 6.8 Billion Debt Waiver approved by Cabinet next week will be paid directly to farmers accounts. It is up to the lenders to subsequently look for the farmers to pay up through a Paybill or whatever," Kuria remarked.