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LOCAL NEWS ROUNDUP

KUSCCO, BOTSWANA AGRO-CHEMICAL ASSOCIATION OF KENYA (AAK)
EXCHANGE NOTES ON SACCOS OPPOSES VAT ON PESTICIDES
MANAGEMENT
AAK has opposed the Government’s move to introduce a 16 per cent
KUSCCO, through its Research & Value Added Tax (VAT) on agricultural pest control products that became
Consultancy Manager Mr. Samson Kibii D?DBSHUD)TKX

visited Botswana in July this year, in a
move geared towards exchange of ideas on In the past, the pest control products were zero rated but in the July 18,
prudential management of Co-operatives in 2018 President Uhuru Kenyatta assented to the Tax Law (Amendment) Act
both countries. that introduced a 16 per cent AAK now says that the VAT will increase the
cost of pesticides, which will be passed on to the farmers who will incur
The Event, held at Metsimotlhabe, Botswana, high cost of production hence skyrocketing food prices. Kenya Association
was hosted by Kweneng North Horticultural of Manufacturers has already written to the National Treasury asking for
Farmers’ Marketing Co-operative and was the suspension of the tax to facilitate talks.
attended, among entities, by The Citizen
Entrepreneurial Development Agency In a statement by AAK, Evelyn Lusenaka, the association’s boss said the
(CEDA) Co-operative department. use of improved agricultural inputs like seed, fertilizers and pesticides are
necessary in improving agricultural production.
Mr. Kibii implored on Kweneng to put more
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just like Kenya has been able to so that its increasing the cost of agricultural production for poor farmers and also
LDLADQRGHOBNTKCFDS?M@MBH@K@RRHRS@MBD higher consumer prices for agricultural produce,” said Lusenaka.
and therefore shun from seeking the same
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BORROWERS’ RELIEF AS RATE CAP IS RETAINED

He told the Co-operative to work closely The proposal to have the rate cap rubbed received a blow as Parliament
with the country’s Ministry of Agricultural proposed changes that may see the lending rate stand at a maximum of
Development and Food Security so that they

could access plant inspection and other
expert services with ease for production of According to the amendments to the rate cap, the National Assembly’s
quality products. Committee on Finance and National Planning suggests to use the Kenya
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points chargeable.

11 SACCOS GET RESTRICTED LICENCES, 2 REVOKED

Eleven SACCOs will be operating on restricted licences while Others include Moi University and Nitunze SACCO, whose
two had their licences recalled according to the SACCO licences have been revoked, COMOCO, Nandi Hekima, and
Supervision Report 2017 released by the SACCO Societies Telepost SACCOs.
Regulatory Authority (SASRA).
The regulator says that the default rate is higher than last year’s
The DT-SACCOs watchdog resolved to this after the SACCOs when the total number of compliant DT-SACCOS was recorded
TMCDQ QDUHDV BNMRHRSDMSKX LHRRDC SGD ?M@MBH@K QDPTHQDLDMSR at 168 against his year’s 161.
of Ksh. 10 million core capital.
According to SASRA, the worst hit in non-compliance was
SASRA said that Jitegemee, Kenya Midland, Miliki, Nanyuki Nitunze SACCO, which derives membership from sugarcane
Equator, Orient, Rachuonyo Teachers,Uchongaji SACCOs are E@QLDQR @ RDBSNQ SG@S G@R ADDM HM ?M@MBH@K STQATKDMBD VHSG
@LNMFSGD@?DBSDC
members defaulting on loans of up to Ksh 160 million.

36| SACCO Star Magazine