The Kenya Revenue Authority (KRA) is mulling a comprehensive review of taxes imposed on sugarcane by-products to curb smuggling from the neighbouring East African Community (EAC) partner states.
This follows concerns from players in the sector over rising cases of smuggling of molasses, ethanol and alcoholic beverages through the porous borders with the neighbouring countries.
Speaking in Kisumu during a stakeholder engagement forum with players in the sugar industry from Western Kenya, KRA Board Chairman Nderitu Murithi acknowledged that price disparities between Kenya and its EAC neighbours have made illicit trade in the by-products a lucrative enterprise. "We have had very candid discussions with the traders and distillers.
There is consensus that the existing tax regime marked by pricing differentials between Kenya and its neighbours is a significant factor fueling smuggling activities," Murithi said.
