Excitement as Somaliland cuts tax on Kenyan miraa
Women sell miraa in Maua town, Igembe South.
Local miraa producers are excited following reports that Somaliland has reduced tax on the Kenyan stimulant.
Before the announcement, tax on produce from Kenya was three times what was charged on the Ethiopian khat.
Somaliland Finance Ministry records indicate that the region imported 44,958 tonnes of khat in 2021.
Before the review, Ethiopian traders were paying $1.57 per kilo of miraa while Kenya’s attracting $4.50.
The Somaliland customs department said miraa from Kenya and Ethiopia would now attract an equal tax of $3.78 per kilogramme.
The directive in Somaliland, a breakaway region of Somalia, took effect on January 23.
Nyambene Miraa Trade Association spokesman, Kimathi Munjuri, welcomed the decision, saying the unfair taxation had locked Kenyan traders out of the lucrative market.
“We have not penetrated Hargeisa, the capital of Somaliland, because of the monopoly and undue advantage Ethiopian businesses enjoyed,” Mr Munjuri said.
“We have only been delivering two tonnes to Lasanood but the trade was disrupted by the latest conflict in the area.”
He added that Kenya has the potential to ship 60 tonnes of miraa to Hargeisa every month.
“We occasionally get orders of five tonnes from the Somaliland capital. Now we can grow this to more than 20 tonnes in April. There is a level-playing field in the trade now,” he said.
Mr Munjuri urged the Ministry of Agriculture to restore the Miraa Fund and provide irrigation water in growing zones.
Kenya has been attempting to penetrate the Somaliland market to the chagrin of Somalia.
In 2020, then-President Uhuru Kenyatta held talks with Somaliland leader Muse Bihi, with the two reaching a deal for direct flights to Hargeisa.
The direct flights were expected to start by March 2021 coupled with recognition of Somaliland travel documents.
However, the bilateral agreements did not bear fruit after Somalia barred two cargo flights from delivering miraa to Hargeisa on grounds of airspace violation.
This comes a month after the amount of miraa exported to Mogadishu, Somalia increased from 20 to 50 tonnes in a day.
Nyamita has been pushing the government to eliminate a commission of Sh550 per kilo introduced in the Mogadishu route last year.
Traders have also been calling on the government to open up trade with Djibouti which has expressed readiness to purchase Kenyan khat.
