President Uhuru Kenyatta has today ordered that the Kenya Revenue Authority (KRA) should implement a 16 percent value added tax (VAT) on milk imported into the country from outside the East Africa Community (EAC).
In the address made from Mombasa State House today, Uhuru also directed the Directorate of Criminal Investigations (DCI) to impound sub-standard powdered milk.
“My intent is to boost the milk industry with one billion shillings as a way of supporting their efforts,” he said.
He also announced that he had ordered the release of Ksh500 million to buy excess milk from farmers.
“I have directed the Treasury to release Ksh500 million to the new KCC to purchase excess milk from farmers and convert this milk into powder for future use. I have also directed they release a further Ksh575 million for two milk-plants to enhance their (KCC) processing capacity” added Mr Kenyatta.
He however said that the government will not set the prices per litre, something that has been a bone of contention between the government and farmers.
The President also directed that tea Regulations of 2019 be implemented to ensure that unregistered tea growers do not sell the product.
“I direct the Ministry of Agriculture to ensure that the tea Regulations of 2019 incorporates appropriate mechanisms to ensure no one who is not a registered tea grower is allowed to sell it,” he said.