Coastal poultry farmers call for unified tax policies amid double taxation concerns

The farmers report significant tax discrepancies on poultry products across counties, leading to double taxation when they transport their goods across county lines. For instance, in Mombasa, poultry farmers must pay various fees, including a Sh 4 carcass inspection fee, a Sh 5 offloading fee per live chicken, Sh 30 per consignment for a transport certificate, and Sh 5 per chicken carcass offloaded. Annual licenses cost Sh 200 for flocks up to 200 chickens and Sh 500 for larger flocks.

This situation is particularly burdensome for farmers trading within Mombasa, Kilifi, and Kwale, as these additional costs strain their profit margins and are often passed on to consumers.

“Poultry farming is already a tough business with rising costs of feed, medicine, and operational expenses. The last thing we need is inconsistent tax regulations that double our burden,” said Moses Kilonzo, a poultry farmer in Mombasa County. “We’re not asking for special treatment; we just want fairness and uniformity so we can operate without these extra hurdles.”

Timothy Mulwa, Chairperson of the Poultry Breeders Association of Kenya, stated that levies on chicks, eggs, and meat in Mombasa have been flagged with the county administration, the Kenya Association of Manufacturers, and the Ministry of Agriculture. He added that these levies hinder inter-county trade and make poultry products less affordable for consumers, urging a swift resolution as the current rates often lead to double charges.

The farmers are calling on the CoG to establish a unified tax framework for poultry products across counties to mitigate costs and streamline trade. They argue that inconsistent tax policies undermine devolution’s intent by creating economic barriers, impacting both their businesses and food security.

The Kiambu Poultry Farmers Cooperative has also echoed this call for a standardized tax policy to support rural livelihoods and ensure fair treatment for farmers and consumers. The Cooperative’s Chairperson highlighted that double taxation threatens the progress of the poultry industry, which plays a vital role in food security.

A CoG spokesperson acknowledged the farmers' concerns and noted ongoing discussions with stakeholders aimed at establishing harmonized regulations that respect county autonomy while promoting a fairer business environment.

With growing support for reform, poultry farmers hope the CoG will act promptly to implement fairer, more efficient tax policies that allow the sector to thrive across counties.