State plans to impose tax on supermarket delis

Supermarkets and convenience stores in the country will soon be required to pay a new levy to the Tourism Fund for cooking and catering food within their premises.

Tourism Fund CEO Joseph Cherutoi said at a consultative meeting on Thursday in Nairobi that the State corporation is targeting an annual collection of between Sh50 million and Sh70 million from this segment.

He said the move is anchored in the Tourism Act which requires the Fund to collect two percent levy from hotels, eateries and bars.

“The segments will start paying the levy immediately, but we needed to have engaged them first and that is what we’re doing today,” Mr Cherutoi told a press briefing on the sidelines of the event.

The tax will be imposed on all supermarkets offering food and beverages with a turnover of over Sh250,000 per month.

“We have already done our surveys and a good number of supermarkets operating within the major cities actually fall under this category,” noted Mr Cherutoi.

Most supermarket chains in Kenya have adopted a new model that includes instore restaurants or what has come to be known as a deli within.

However, retail representatives present protested the move saying they were being double-taxed.

“We have been paying 16 percent to the government already, why would the government ask us to pay an extra tax?” queried Richard Matano, a representative from one of the convenience stores.