Government Eliminates Certain Farm Taxes and Levies
Government Eliminates Certain Farm Taxes and Levies
The government has eliminated taxes and levies for farmers, according to SME Cabinet Secretary Simon Chelugui’s announcement on Tuesday.
The CS said in a statement that the eliminated taxes and levies were intended to reduce the cost of manufacturing by focusing on raw ingredients for animal feeds.
In a statement posted to social media, he said, “As the government, we take this early opportunity to assure our dairy farmers of our unwavering support and commitment to ensuring that the dairy industry continues to be stable.” The CS said that it was detrimental to dairy farmers because animal fees made up 60% of the entire cost of producing milk.
The government has given money to the Kenya Creameries Corporation (KCC) as part of the reforms to assist dairy farmers, particularly during the El Nino season, to help them deal with the excess milk. The first installment of Ksh 500 million will be sent to KCC, which will be utilized to deal with excess products and dry milk into powder.
“This will enable the new KCC to purchase, dry into milk powder, and store the surplus milk as part of the strategic food reserve, and hence even seasonality in supply,” Chelugui said.
According to government estimates, the prolonged period of severe rainfall anticipated until January 2024 will produce an additional 50 million liters of milk. Thus, every precaution taken will guarantee that the milk is not wasted.
Additionally, farmers will know that there is a market for their produce. In addition, the government will fund the moderation program, which will improve the new KCC’s processing capacity and facilitate its operation.
The government has allocated Ksh3.8 billion for modernizing projects around the nation. Runyenjes, Mogotio, Kabianga, Narok, Dandora, Miritini, Eldama Ravine, Eldoret, Sotik, and Kitale Plant are the places that have been chosen for phase III.
