Markets & Finance

Traders count losses after Wakulima shutdown

wakulima

Bags of fresh produce outside Nairobi’s Wakulima Market. Traders are counting losses following closure of the market on Tuesday. Photo/DIANA NGILA

Supply of fresh produce in Nairobi was disrupted on Tuesday after traders were denied entry into Wakulima Market for failure to pay new cess charges imposed by the county government.

The market supplies more than half of the fresh produce distributed in Nairobi through a value chain that flows down to groceries in estates to homes.

“When a perishable commodity is sold on the second day it loses the value it had when fresh from the farm. Our traders have been left counting losses ,” said Cyrus Kaguta, the chairman of All Wakulima Traders Association.

The county government increased the fees for goods entering the market last month.

“Arising from County Executive Committee meeting held on March 27, 2014 in county chambers, it was decided that all traders in the markets pay the new rates as per the Finance Act 2014 immediately,” read a county government notice at the market.

Traders supplying onions, for instance, are required to pay Sh42,000 from Sh10,000 for every truck that enters the market. Mr Kaguta and other officials were engaged in discussions with county officials yesterday, to resolve the standoff.

Samuel Mwangi, a watermelon trader at the market, said the charges would leave them with nothing because of high overheads.

“We spend a lot on transport from the farm and the new rates that have been introduced simply means that we will be working at a loss,” said Mr Mwangi.

He said watermelon traders are now required to pay Sh1,200 per tonne of fruits brought into the market from Sh875 per tonne previously.

Mr Kaguta said traders would be forced to pass on the cost of the new charges to consumers, making food in Nairobi more expensive.