Taxes killing hen that lays ‘golden’ eggs
Poultry farmers are urging the government to reduce the prices of rearing equipment. Kiambu Poultry Farmers Co-operative Society (KPFCS) this week raised the issue, saying the value added tax (VAT) on rearing equipment and feeds has made it hard to keep chicken.
“The 16 per cent VAT on poultry implements has affected many farmers in this region, the largest chicken growing area in Kenya. Farmers are paying VAT on feeds, machinery and equipment,” said KPFCS secretary general Zachary Munyambu.
Several equipment — such as poultry incubators, brooders, dryers, ploughs, disc harrows, combine harvester-threshers, and milking machines — that were previously zero-rated, now attract tax.
Yet other necessary machinery include manure spreaders, fertiliser distributors, hay balers, combine harvesters, machines for sorting eggs and preparing animal feed, tractors and poultry incubators — all taxed.
Growth in the sector has faced many challenges, from failed weather to high cost of inputs such as fertiliser and diesel, to drive farm machinery.
Humphrey Mbugua, a poultry expert, said introduction of taxes on farm inputs has worsened food insecurity in Kenya amid a long drought.
The agricultural sector is estimated to have contracted by 1.2 per cent in 2021, due to adverse weather conditions. The government has allocated Sh46.7 billion to the sector, a decrease from Sh69.7 billion in 2021-2022.
