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Aug 26, 2013
General
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A global trade fair to be held in Nairobi between August 28-31 will seek to correct the flaws hampering trade amongst the East African states, organisers have said.
A global trade fair to be held in Nairobi between August 28-31 will seek to correct the flaws hampering trade amongst the East African states, organisers have said.
The Africa Import Fair’s managing director Solomon Kinyanjui said flaws in the East African Community (EAC) treaty put several exporters from Kenya at a disadvantage.
“The decline in Kenya’s exports to the region is due to the failures within the EAC treaty. The Kenyan goods entering Uganda and Tanzania are charged duty. They are at times barred for not meeting the percentage of local content,” Mr Kinyanjui told state broadcaster KBC.
According to the rules of origin, Kenyan manufacturers require at least 35 per cent of local produce to export to neighbouring states.
However, manufactured goods failing to meet this standard face taxes. “Kenya is disadvantaged in this deal. The EAC states have improved the quality of products,” Mr Kinyanjui said.
Kenya, Uganda and Tanzania, entered a landmark trade pact in 2005, to charge each other a rounded tax of 25 per cent on all industrial goods, a 10 per cent levy on semi-finished products and zero duty on raw materials to boost industrial production.
The import-export fair, aiming to bring together exporters and importers from across the region and the world to boost intra-African trade.
The Africa Import Fair’s managing director Solomon Kinyanjui said flaws in the East African Community (EAC) treaty put several exporters from Kenya at a disadvantage.
“The decline in Kenya’s exports to the region is due to the failures within the EAC treaty. The Kenyan goods entering Uganda and Tanzania are charged duty. They are at times barred for not meeting the percentage of local content,” Mr Kinyanjui told state broadcaster KBC.
According to the rules of origin, Kenyan manufacturers require at least 35 per cent of local produce to export to neighbouring states.
However, manufactured goods failing to meet this standard face taxes. “Kenya is disadvantaged in this deal. The EAC states have improved the quality of products,” Mr Kinyanjui said.
Kenya, Uganda and Tanzania, entered a landmark trade pact in 2005, to charge each other a rounded tax of 25 per cent on all industrial goods, a 10 per cent levy on semi-finished products and zero duty on raw materials to boost industrial production.
The import-export fair, aiming to bring together exporters and importers from across the region and the world to boost intra-African trade.
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