The Burden of Produce Cess and Other Market Charges in Kenya
Over the years, food markets have been affected by a number of challenges. To understand the cost structure of distribution of agricultural commodities, the Kenya Markets Trust commissioned this study covering 12 Counties in Kenya and five agricultural products (maize, vegetables, milk, fish and livestock).
What is Produce Cess?
Produce cess is a form of levy charged on domestic agricultural trade. Revenue raised from cess is meant for improvement of production and distribution of the taxed commodities.
Why Study About Cess?
The overall purpose of this study was to generate evidence and information on the nature of cess and other charges, how it is levied across counties and how it influences the cost of production and distribution in the agricultural sector in Kenya.
This information would be used to gauge the significance of produce cess and other charges and propose recommendations on how it can be structured to ensure its revenue generation objectives do not undermine the competitiveness of the agriculture sector.
In Kenya, no serious empirical study has been done on the impact of produce cess on agriculture sector thus the need to undertake this research. Such empirical evidence is critical for informing policy discussions and debates on produce cess.
Key Finding From the Study
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