A basin of muguka and a bunch of miraa. For years, miraa and muguka traders in the county have operated under a standard Sh3,100 business licence.
In the bustling evening markets of Hola town in Tana River County, bundles of miraa (khat) and muguka once changed hands with speed and purpose.
Today, however, the same traders wear long faces and their voices are tinged with despair.
A proposed Finance Bill by the Tana River County Government threatens the trade that has survived bans, stigma and national controversy.
For years, miraa and muguka traders in the county have operated under a standard Sh3,100 business licence.
The new Finance Bill doubles this cost, demanding Sh6,000 for a miraa licence and a separate Sh6,000 for a muguka licence.
In addition, a Probox vehicle that previously paid Sh5,000 cess charges for transporting miraa will now be charged Sh40,000. Pickups face a charge of Sh70,000, while lorries could pay up to Sh150,000.
A man carries muguka at the Kongowea Market, Mombasa on May 29, 2024, a day after the High Court lifted a ban on its trade.
Muguka attracts even steeper fees: Sh80,000 for a Probox, Sh100,000 for a pickup, and Sh350,000 for a lorry, to which an additional off-loading charge of Sh3,500 is imposed. For small traders, these charges are punitive.
“A kilo of miraa sells for Sh1,300, but I buy it from the farmer at Sh1,000. The Sh300 margin must cover wrappers and other small county levies. What profit is left for me?” asked Fredrick Akubia, a long-time trader in Hola.
His colleague, Japheth Kirimi, does not mince words. “What the county is proposing is not taxation, it is strangulation. These figures are outrageous and malicious.”
To many, the Bill feels less like a revenue measure and more like a deliberate attempt to drive them out. “This is not about revenue, it is about phasing us out. Some in the county government want to frustrate non-locals so they can take over our market,” laments Catherine Kawera, another trader.
Transporters, the very artery of the miraa economy, are equally defiant. “I used to pay Sh5,000 cess for my Probox. Now they want Sh40,000 plus an off-loading fee. That’s more than my monthly earnings. How do they expect us to survive?” asks Abdalla Guyo, a driver who ferries miraa from Maua to Hola.
Pickup driver Hassan Noor scoffs at the county’s mathematics. “Sometimes I carry goods worth Sh50,000 in a single trip. If the county charges me Sh70,000, I’ll be paying more than the value of my load. Does that make any sense?” he posed.
In 2024, coastal counties, including Mombasa, Kilifi, and Taita Taveta declared outright bans, citing addiction and youth delinquency. The move sparked uproar, particularly in Meru and Embu, where the stimulant is a lifeline for thousands of farmers.
Miraa on display on May 24, 2024.
The national government quickly nullified the bans, invoking the Crops Act 2013 and the Miraa Regulations 2023, which classify miraa and muguka as scheduled crops, protected for cultivation, transport, and trade.
President William Ruto opposed the bans, while the Ministry of Agriculture set aside Sh500 million for regulation and value addition.
According to the Ministry of Agriculture, the miraa sector in Kenya is valued at more than Sh13 billion annually, with Meru and Embu counties being the leading producers. A Kenya National Bureau of Statistics (KNBS) 2023 report indicates that miraa exports earned the country over Sh16.5 billion in the last five years, with Somalia, Israel, and the Democratic Republic of Congo being the main markets.
Budget analyst Omar Hamisi of the International Budget Partnership–Kenya cautions against reckless taxation.
“Revenue collection is not a game; it is an economic duty. If you overburden traders, you do not expand your base; you shrink it by driving them out of business,” he said.
However, Tana River County Revenue Director Kase Daiddo said the figures are merely proposals and may undergo changes before ratification. “The proposed charges are not final. They will remain proposals until the county assembly approves them, and traders have room to present their concerns,” he said.
