Kakamega Governor Fernandez Barasa has strongly criticized the new taxation and payment requirements imposed on the sugar sector.
Speaking during Eid-Ul-Fitr celebrations at Lugari Station Mosque on Wednesday, Governor Barasa urged Members of Parliament to amend certain provisions of the Finance Act, 2023, particularly those that compel farmers to pay additional taxes through registration on the e-TIMS platform.
Governor Barasa emphasized that Kakamega County’s economy relies heavily on farming, and the implementation of the new tax regulations would have severe negative consequences for the region.
Barasa specifically opposed the sugar directive, which requires farmers to furnish e-TIMS invoices for every cane delivered to factories before receiving payment, a move that has garnered opposition from Barasa and other leaders in the Western region.
The Kenya Revenue Authority (KRA) has mandated all sugarcane farmers to register on its tax payment platform, e-TIMS, effective April 1, 2024. Non-compliance would render farmers unable to sell their crops.
However, Governor Barasa vehemently opposed the new tax law, demanding its immediate suspension.
“This directive will adversely affect sugarcane farmers, the majority of whom lack technological expertise and do not even own smartphones,” he stated.
During a recent event, Navakholo MP Emmanuel Wangwe called on KRA to halt the implementation of the plan, arguing that it would burden sugarcane farmers in the region. He urged KRA to reconsider its e-TIMS regulations and instead collect taxes from the companies to avoid inconveniencing farmers.
“The Western region heavily relies on sugarcane farming, and the KRA directive will overtax farmers and disrupt the timely payment of dues,” Wangwe expressed.
Governor Barasa further urged the cane pricing committee to reconsider their decision, particularly regarding the reduction in the price of cane per tonne. He stressed the importance of increasing the buying price to over Sh6,000 per tonne to ensure fair compensation for farmers.
Additionally, Governor Barasa called on the Agriculture and Food Authority (AFA) to reassess its decision on payment and raise cane prices so that farmers can recover their investments.
