Rédaction Africa Links 24 with Daily Nation
Published on 2024-01-29 11:50:12
The United Kingdom has filed an official complaint against Kenya for imposing higher import duties on some of its products, according to a senior government official. The issue stems from Kenya applying a 35 percent tariff on imported whiskies from the UK, despite the Economic Partnership Agreement (EPA) between the two countries setting the import duty on whiskies from the UK at 25 percent in line with the East Africa Community (EAC) Customs Union.
Alfred K’Ombudo, the Trade Principal Secretary, disclosed that the UK has raised concerns over the higher tariff, which it argues contradicts the regional bloc’s common external tariff (CET). This complaint was presented to the EPA Council, the decision-making body established by the two countries. In response, a technical working committee has been formed to address the issue in consultation with various state agencies including the Kenya Revenue Authority, the National Treasury, and Kenya Bureau of Statistics.
The UK-Kenya Economic Partnership Agreement provides for a 25 percent levy on UK products such as whiskies, cars, and car parts, but Kenya has also ratified an EPA with the European Union, which is yet to be ratified in Brussels. This complicates matters further, as Kenya is supposed to adopt the EAC CET but the EPA with the EU offers reciprocal lower rates for imports from the EU.
In 2022, the EAC increased the import duty on spirits and wines to 35 percent in an effort to promote local production. However, Kenya aims to push for a lower band of CET from 35 percent to a range of 15-20 percent in the Medium Term Revenue Strategy for 2023, citing difficulties in implementing the multiple rates. The Treasury has highlighted that the current multiple rates create differential protection for industries, resulting in delays in cargo clearance. As a result, Kenya will request duty-free status for primary raw materials/inputs and a common duty rate in the range of 15-20 percent for all other imported goods for consideration by the EAC Council.
