By John Kariuki
The Group Chief Executive Officer of Kenya Tea Development Agency Holdings (KTDA), Wilson Muthaura, has lauded the government's bold move to propose comprehensive tax reforms aimed at alleviating the financial burden on farmers and invigorating the agricultural sector.
Speaking in support of the presentation made by the Principal Secretary for Crop Development, Dr. Kipronoh Ronoh Paul, CBS, before the Finance Committee of the National Assembly chaired by CPA Hon. Kimani Kuria (MP, Molo), Muthaura underscored the critical need for a policy environment that supports farmers, agribusinesses, and value-chain players.
The proposals presented by Dr. Ronoh highlighted the detrimental impact of current tax regimes on vital agricultural inputs, including tea, manufacturing equipment, packaging materials, and animal feeds. These levies, he noted, have continued to erode profitability across the sector, stifling productivity and farmer earnings.
Wilson Muthaura termed the Ministry's intervention as "a progressive and pragmatic step toward restoring the dignity of Kenyan farmers." He further emphasized that reducing taxation on essential inputs will enhance operational efficiency, lower production costs, and ensure the global competitiveness of Kenyan agricultural products, particularly tea.
“This is a timely and strategic move. The agricultural economy is the backbone of our rural communities, and pro-farmer tax policies will translate into direct benefits improved household incomes, increased investments, and national food and economic security,” Muthaura stated.
PS Ronoh echoed similar sentiments during his submission, calling for a finance framework that prioritizes sustainability and growth. He emphasized that agriculture should no longer be seen merely as subsistence but as a viable commercial venture warranting fiscal protection and facilitation.
The envisioned reforms are expected to catalyze agrarian transformation, creating employment, increasing resilience among smallholder farmers, and advancing Kenya’s broader economic agenda. If adopted, the Finance Bill 2025 will mark a significant milestone in repositioning agriculture as a cornerstone of national prosperity.
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