Kenya Considering Higher Taxes on Certain Importers Who Use Road Transport Over Rail
Kenya is considering imposing a higher tax for importers who transport goods by road, instead of using the country's railway servicing the route, from the Mombasa port to Nairobi, the Hong Kong Trade Development Council reported Oct. 12. Parliament recommended…
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increasing the levy by 0.3% for importers who do not use the standard gauge railway and providing an incentive in the form of a lower railway development levy fee rate for importers using it, the report said. The proposal comes as the Kenyan government tries to “drive income” to the railway to pay off its “large” debt on the project. But traders in Kenya continue to prefer roadways, HKTDC said. A government joint technical committee study released in February 2019 showed it costs 133.5% more to transport cargo using the rail system than by road.