Miraa export resumes after tax dispute is resolved

Traders package miraa for sale at Kabuitu market in Igembe Central on January 8, 2017. The export of the commodity to Mogadishu resumed on Monday evening after Somalia authorities rescinded their earlier decision to increase taxes. PHOTO | PHOEBE OKALL | NATION MEDIA GROUP

Mogadishu, the largest miraa export market, takes in about 50 tonnes of the commodity daily.

Besides the government tax, traders are required to pay other levies to individuals who control the business.

The export of miraa to Mogadishu resumed on Monday evening after Somalia authorities rescinded their earlier decision to increase taxes on the commodity.

Somalia had last week increased the tax from Sh309 ($3) to Sh360.5 ($3.5) per kilo of khat, leading to a four-day boycott by Kenyan miraa exporters.

Nyambene Miraa Traders Association (Nyamita) spokesman Kimathi Munjuri said Mogadishu officials and traders agreed on a tax of Sh247 (2.40USD) per kilogramme of the herb after four days of negotiations.

“We are glad that the authorities and Somali importers agreed on a friendly tax (rate). However, we are yet to get official communication on the agreement. We resumed business on Monday evening with 20 tonnes of miraa,” Mr Munjuri said.