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{
    "id": 96238,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/96238/?format=api",
    "text_counter": 54,
    "type": "speech",
    "speaker_name": "Mr. Kenyatta",
    "speaker_title": "The Deputy Prime Minister and Minister for Finance",
    "speaker": {
        "id": 168,
        "legal_name": "Uhuru Muigai Kenyatta",
        "slug": "uhuru-kenyatta"
    },
    "content": "Mr. Speaker, Sir, due to shortage of wheat grain in the East African Community, no single country has, since 2005, applied the CET rate of 35 per cent. Tanzania has been applying 10 per cent while Uganda, Rwanda and Burundi have been applying 0 per cent on all their wheat grain imports. It is only Kenya that has been applying a higher rate of duty on wheat imports under the EACCET. That is 35 per cent in 2007/2008, 10 per cent in 2008/2009 and 25 per cent in 2009/2010 to provide some level of protection to our farmers. Protection through higher rate was only possible over the period of 2005 to 2010 when the movement of products made from such raw materials imported by partner states were restricted Mr. Speaker, Sir, with the coming into effect of the East African Common Market (EACM) where goods are expected to move freely, it would be difficult to have different import duty on any product imported into the region since those products can find their way to other partner states. In this regard, wheat imported into Tanzania at 10 per cent may find its way into Kenya thus defeating the purpose of imposing a duty rate higher than 10 per cent. In addition, free movement of goods across the East Africa partner states will make it difficult for the local manufacturers that import raw materials at higher rates than others to survive. As a way forward, we take serious note of the concerns raised by our farmers and hon. Members and assure them that, as a country, we shall petition our partner states to reconsider the level of duty on imported wheat grain as part of a long term solution. The Government, through relevant Ministries, will implement appropriate reform measures to address structural constraints facing our wheat farmers in order to ensure efficiency and competitiveness. However, I wish to point out that any unilateral increase of duty on imported wheat, raw material for wheat flour, for Kenya alone, from 10 per cent to 25 per cent, will make wheat flour in Kenya expensive, encourage free imports of wheat flour milled using cheaper imported wheat grains from Uganda and Tanzania, thereby reducing demand for Kenyan wheat flour and Kenyan wheat grains from our farmers, as well as distorting investments in milling with the consequence of relocation and unemployment of our people, including the loss of our tax base. Thank you, Mr. Speaker, Sir."
}