Kenyan Khat- Miraa farmers to hold talks with Somaliland on taxes

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Somalilandsun- The Kenyan Foreign Affairs Ministry has allowed miraa dealers to lead trade talks between their Somaliland counterparts and the Meru County government.

Nyambene Miraa Traders Association acting chairman Kimathi Munjuri wrote to Governor Kiraitu Murungi last month asking him to revive negotiations on the lucrative Somaliland market.

In a letter addressed to Mr Munjuri and seen by the Nation, the director of economic affairs at the ministry of foreign affairs said the initiative was welcome as it aimed at enhancing trade relations.

TAXES

“We propose a team of government officials is co-opted during the visit to take note of any policy issues that may require attention,” the letter read.

The association wants the county government to ask Somaliland to begin talks on doing away with punitive tax imposed on Kenyan miraa.

A kilogramme of Ethiopian miraa attracts a $3 tax (about Sh303) compared to $20 (about Sh2,025) imposed on Kenyan produce.

“The nod could not have come at a better time. We expect miraa supplies to increase by the end of this month due to the rains. This market will serve to rationalise the prices thereby giving farmers reasonable returns,” Mr Munjuri said.

“The unfavourable and discriminative taxation needs to be harmonised. We will also be pushing for supply quotas specifying variety, standards, period and price per unit through a signed agreement.”

Nyambene Miraa Trade Association members and their spokesman Kimathi Munjuri (with watch) address journalists at Gatimene Gardens, Meru County. They want talks with Somaliland speeded up. PHOTO | PHOEBE OKALL | NATION MEDIA GROUP

FLIGHT

Mr Munjuri said Kenyan traders gained access to the Somaliland market when shortage hits Ethiopia.

“We have been exporting about four tonnes of miraa to Hargeisa daily and two more to Lasaanod daily. But since Kenyan miraa is taxed three times than the Ethiopian produce, it is difficult to sustain the market” Mr Munjuri added.

He said Kenyan traders were forced out of the market in January when Somaliland imposed high taxes on their miraa.

“This tax alongside more than Sh184,000 charged per flight drove us us out of the market,” he said.

DJIBOUTI

The traders have been fighting for a stake of the Somaliland miraa market which is said to be valued at more than Sh40 billion.

An attempt by former Meru Governor Peter Munya to push for talks to scrap punitive taxes in 2016 caused a diplomatic row between Kenya and Somalia.

Traders hope to enter the Djibouti market.

source: the daily nation

1 COMMENT

  1. Khat is a disease that needs to be eradicated in the social welfare of the community. The government of Somaliland has to think of way of banning it totally. It creates laziness, sleepless and confusion to eaters. It breaks marriages. It also creates stress. This can be proven when in the morning you visit an office or you arrive at the air port and the officer instead of helping you starts to shout at u or your suite case is swung like a ball in football field. No to this Kenyan visit. Kenyans Visit Somaliland to teach dairy farming and how to cook Gideri and not khat issues. My fellow Somalilander start learning to plough. Drought is at the corner