The taxman has strongly defended the government’s position on taxes, saying the levies imposed on businesses are not to blame for the high cost of production.

While manufacturers have blamed the Kenya Kwanza administration, even voicing their preference for Uganda and Tanzania as more favourable investment destinations, the Kenya Revenue Authority (KRA) insists that the industry already has the necessary incentives to spur production.

Kenya Revenue Authority (KRA) Deputy Commissioner Policy and Tax Advisory Maurice Oray noted that agricultural produce, for instance, is exempt from the VAT Act.