Kidero-nomics: City Hall abolishes tax on maize
Nairobi county governor Evans Kidero has abolished cess tax charged on maize sold in the city.
Dr Kidero said the 4 per cent tax relief, to take effect from next month, is aimed at reducing the cost of maize for city residents.
“We are going to abolish maize cess levied at 4 per cent starting June to cushion residents. So in our small way we are trying to ease the burden on the residents in this testing economic times,” said Dr Kidero.
He made the remarks while addressing members of Pubs, Entertainment and Restaurants Association of Kenya (Perak) on Wednesday evening.
Dr Kidero said he expects the gesture to reduce the price of maize flour in Nairobi by 6 to 7 per cent.
“If the minimum salary is 10, 000 and the average family eats four packets a day, that makes it about 4, 000 before you pay rent and even attend to other needs? This is crazy,” said Dr Kidero.
He asked other counties to follow suit and abolish the tax on maize.
“We are also pleading to all the other counties that maize is transported through to give remission on cess because a lot of maize used in Nairobi City County comes from Kitale and it passes through four counties before it reaches the city and all these counties charge cess,” he said.
He said that four counties, Trans Nzoia Uasin Gishu, Nakuru County and Kiambu all levy maize cess on a lorry of maize from Kitale on its way to Nairobi making the commodity expensive when it finally hit the shelves in the capital city.
“These are five cess which in total adds to 20 per cent. If all of us remove the cess then the price should come down by 20 per cent,” Kidero said.