Britain protests higher tax on its whiskies, cars

The United Kingdom has made an official complaint over the higher import duty Kenya charged some of its products, a senior government official said.

In line with the East Africa Community (EAC) Customs Union, Kenya applied a tariff of 35 per cent on imported whiskies from the UK.

However, the Economic Partnership Agreement (EPA) the two countries signed sets import duty on whiskies from Britain at 25 per cent.

The Principal Secretary for Trade Alfred Ombudo K'Ombudo said the UK argued for a halt of the higher tariff, which would contradict the regional bloc's CET (common external tariff).

“This was formerly presented as a grievance by the UK before the EPA Council,” said K’Ombudo. The EPA Council is the decision-making body that the two countries formed.

The PS noted that at the initiation of the trade department, a technical working committee was set up to address the problem.

“We are in consultation with various State agencies including the Kenya Revenue Authority, the National Treasury and Kenya Bureau of Statistics (KEBS),” said K’Ombudo.

The UK-Kenya Economic Partnership Agreement that was signed allows UK products such as whiskies, cars and car parts to be charged a levy of 25 per cent.

Kenya has also ratified another EPA with the European Union which is yet to be effected in Brussels. This means that the EU deal will also find itself in the same dilemma should it be ratified by Brussels.

“Under the EAC protocol, Kenya should adopt the EAC Common External Tariff (CET),” said Robert Waruiru, a tax expert.

“The EPA gives reciprocal lower rates for imports from the EU…perhaps the push (by Kenya) for a revision of the CET bands.”