Kenya Revenue Authority (KRA) announced the development saying the charges took effect from March 1.
The taxman explained that the cess will be levied on cereals delivered at respective millers’ premises.
The officials will be identified through reflector jackets and will be stationed outside the premises of the millers.
Cereal traders will start paying cess to Nairobi County government, a move that is set to hit hard the grain milling sector and pile upward pressure on consumer prices.
Kenya Revenue Authority (KRA) announced the development saying the charges took effect from March 1.
The taxman explained that the cess will be levied on cereals delivered at respective millers’ premises.
The officials will be identified through reflector jackets and will be stationed outside the premises of the millers.
“Please take note that KRA and the Nairobi County government shall with effect from Wednesday, March 1, 2022, at 7 am in the morning, commence collection of cess on cereals from produce being brought into your members premises,” said Ms Githumba in a letter dated February 25, 2022.
“For clarity purposes, the responsibility for paying for the cess shall be on the owner of the products and not the miller, unless the miller is the owner,” adds the letter addressed to CMA chief executive officer Paloma Fernandes.
The millers are already grappling with inter-county barriers having to pay cess in several counties as more than 90 percent of maize processed in Nairobi ferried from Rift Valley.
They also have to pay other charges levied by counties including distribution and branding permits which millers have to pay whenever they go to counties other than the ones they are based in.
Ms Githumba points out that the decision came after several engagements between KRA and the association late last year.
The association represents the grain milling industry comprising of varied wheat, maize, and other cereals millers in Kenya with 40 percent of total grain milling capacity for maize in Kenya and over 80 percent of the wheat milling capacity.
CMA reaches over 10 million consumers of maize flour and over 30 million consumers of wheat flour drawn from members operating mills in Mombasa, Machakos, Mwingi, Kitui, Nairobi, Thika, Nakuru, Uasin Gishu, Kitale, Kisumu, amongst others.
