Contributions of county levies to the total cost of fresh fruit and vegetables’ business In Taita Taveta County, Kenya

Abstract

Fresh fruits and vegetables‘ (FFV) trade is a promising industry in Kenya. However, different types of levies imposed by the county governments may have a substantial effect on the costs of the FFV business but this is yet to be fully established in Taita Taveta County-which is among the country‘s major producers of FFV. The study sought to establish the contributions of each individual levy to the total cost of the FFV trade in Taita Taveta County. Using a survey research design and targeting 90 registered dealers in the area through copies of questionnaire and interview schedules, the study established that proportionality, affordability and poor regulation of the levies in that order had strong negative effects on the performance of FFV trade in the County. This implies that the local levy regimes could cripple the FFV trade in the area if not addressed in time. Tentatively, this could affect the compliance rates meaning less local revenue collected for the county government. Therefore, the study recommends that the County government revises its tax regimes and methods of collection so as to avoid levying high taxes and surcharges on the FFV traders as this would discourage them for doing more business in the area.

Keywords: Fresh fruits and vegetables, County levies, Total cost of business, Kenya