Eastleigh Business Leaders Decry Soaring Import Duties in Tense Meeting With Trade PS
Business leaders from Eastleigh have sounded the alarm over rising import taxes that they say are crippling trade and forcing some businesses to shut down. During a high-level meeting on Thursday with Principal Secretary for Trade, Regina Ombam, members of the Eastleigh Business District Association (EBDA) outlined the devastating impact of the new Finance Bill.
The leaders reported that the cost of importing key goods—such as clothes, shoes, curtains, carpets, aluminium products, and furniture—has risen dramatically, eroding profit margins and leading to job losses.
According to EBDA members, the 200% increase in duty on imported carpets has made stocking them unsustainable. “Most carpets are not manufactured locally. We’ve been forced to stop selling them,” one trader said.
A new Sh200 per kilogramme duty on aluminium was also criticized for lacking stakeholder consultation, with business owners warning that it is affecting the construction and manufacturing sectors and threatening ongoing development projects.
Blankets have also been hit by abnormal import duties under Chapter 63 of the HS Code, pushing traders to reroute shipments through neighboring countries like Tanzania, where tax rates are more favourable. This shift is undermining Kenya’s customs revenue and causing shortages of essential goods.
Noor Abdirashid, speaking for the traders, revealed that some importers are now using Uganda—a landlocked country—for exports, simply because it’s cheaper than importing via Kenya. “It’s cheaper to go through a country without a port,” he noted, highlighting the absurdity of the current system.
Delays in clearing goods at the port have further compounded the problem, increasing storage costs and pushing up prices for consumers.
Traders proposed urgent interventions including:
- Reviewing revised import duty rates
- Consulting stakeholders on the real economic impact
- Suspending taxes on non-locally produced goods
- Improving transparency and engagement in future policy decisions
Principal Secretary Ombam acknowledged the severity of the situation and praised Eastleigh’s contribution to the national economy. She promised to escalate the issues and provide solutions by mid-August.
“I am promising I am going to engage and support, and grow our business without discrimination. It is about growing the Kenyan economy,” said Ombam.
Local MCA Ahmedkadar Dabar, who also attended, warned against using tariffs as a new form of oppression. “Eastleigh used to be harassed by KEBS. Now it’s punitive taxes,” he said, adding that Eastleigh contributes Sh252 billion annually to the exchequer.
The meeting concluded with consensus on the urgent need to stabilize Eastleigh’s business environment, protect jobs, and ensure fair taxation that supports—not stifles—economic growth.
In other news:Why Are Rents Falling in Nairobi’s Most Expensive Estates? The Numbers Will Surprise You
Eastleigh Business Leaders Decry Soaring Import Duties in Tense Meeting With Trade PS