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"id": 1093738,
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"speaker_name": "Sen. Sakaja",
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"legal_name": "Johnson Arthur Sakaja",
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"content": "they are incurring more costs in terms of demurrage charges. This has also affected the entire value chain because this sector employs thousands of our citizens. Madam Temporary Speaker, the taxes are punitive. It is double taxation and it is not fair. It has adversely affected the profitability of these businesses, which were already going through a difficult time due to the current state of the economy and the ongoing COVID-19 pandemic. In view of the gravity of these issues raised, I request that you refer this matter to the relevant House Committee pursuant to Standing Order No. 43 (3) to intervene and get responses on the following issues- (1) The justification for the double taxation that is specifically targeted at one sector, which is the footwear importers. This is a huge sector of my traders in Nairobi and across the country; (2) To task the Commissioner General of KRA to clarify in detail the justification and formula behind the double taxation of footwear; Madam Temporary Speaker, just to give you the context, these shoes are the ones which are sold in Kariobangi and Eastleigh, Garissa Lodge at Kshs120. When you tax the container one dollar per shoe, that tax is actually the price of the shoe that is normally a dollar. Children are going back to school and these are the shoes they use. Mostly they are sandals. This business people are very comfortable with paying the Kshs2 million, but why is it that out of all the countries in EAC, this tax is only targeted at Kenya? It is good that you were a Member of East African Legislative Assembly (EALA). This is an urgent matter because with every passing day the demurrage costs are going up. In fact, we might even have to ask for a waiver. I pray that this can be given to the relevant committee and they can be given a timeline to respond. We are also trying other means; we have spoken with the Executive, but the Senate must be able to pronounce itself on this issue of the double taxation that is unfair on a huge number of traders in Nyamakima, Eastleigh, Kariobangi and many other places. Thank you, Madam Temporary Speaker."
}