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Markets harvest more from cess than sources, says new study

A recent research by Egerton-based Tegemeo Institute of Research shows that counties where goods are produced are charging lower than the market destination. FILE PHOTO | NMG

What you need to know:

  • A recent research by Egerton-based Tegemeo Institute of Research shows that counties where goods are produced are charging lower than the market destination.
  • For instance, Trans Nzoia county charges Sh17 for a bag of maize, while the same is charged Sh70 in Nairobi.
  • Cess has become a controversial subject in the recent days with millers and tea stakeholders accusing counties of slapping the fee on their goods.

Cess collection, which accounts for about two per cent of the county’s revenue, benefits destination markets more than the source county, a move that has impacted negatively on income that devolved units are making from levies.

A recent research by Egerton-based Tegemeo Institute of Research shows that counties where goods are produced are charging lower than the market destination.