A study on the potential of northern corridor counties’ laws on transport and movement of cargo along the Northern Corridor for TMEA
The promulgation of the new constitution in Kenya, the creation of Counties and the devolution of revenue raising will have a have significant long-term impact primarily on the Kenyan economy’s growth prospects and to a lesser extent on the growth of countries served by the northern corridor
Excessive taxation on transport activities will feed into manufacturing costs and erode competitiveness of Kenyan products and services as well as undermine GoK’s policy of maintaining Kenya as the primary trade corridor for East Africa.
The objective of this study is therefore to:
- Identify County Bills, with special interest to Northern Corridor counties (Mombasa, Kilifi, Kwale, Taita/Taveta, Makueni, Kitui, Machakos, Nairobi, Nakuru, Kericho, Uasin Gishu Kakamega, Busia and Bungoma), and classify them with regard to the type of taxes, levies, charges they are imposing on transport related activities;
- Analyse county funding sources in relation to county development programmes and expenditures;
- Assess and quantify the potential economic impact of county taxes, levies, charges etc. on both county, national and east Africa regional economic development particularly the freedom and cost of transport, productivity and competitiveness;
- Propose alternative county revenue raising mechanisms for funding development programmes through expansion of their revenue base through improvements in their industry, education, services sectors etc. and which complement national growth objectives; and
- Propose improvements to transport policy at the national and devolved level that assist county growth and lessen reliance on the current revenue raising mechanisms.
The specific objectives of the study are:
- To analyze the Constitution most especially Schedule Four with a view to establish who between the National and the County governments has rights over the Northern corridor;
- To analyze Mombasa County Finance Bill, 2014 and the rest of the Northern corridor counties and outline its effect on the cost of movement of goods and services;
- Identify Northern Corridor counties finance laws with a view to ensure that whatever is enacted does not affect the cost of goods and services movement along the corridor;
- Identify all other county laws that may have an impact on the movement of goods and services along Northern Corridor;
- Establishing an Advocacy Strategy for Improving transport policy and planning at both national and devolved units;
- Developing a communication toolkit that TMEA and the business community can employ in educating, communicating and advocating with the corridor counties of Mombasa, Kilifi, Kwale, Taita/Taveta, Makueni, Kitui, Machakos, Nairobi, Nakuru, Kericho, Uasin Gishu Kakamega, Busia and Bungoma aimed at making sure County governments are aware of the greater impact of their policy making and planning decisions on their counties and the region as a whole; and
- Engage the Northern Corridor Counties to ensure that they understand their role in trade and transport logistics facilitation through structured information sharing and training.
The findings of the study are expected to provide the business community with a tool to more effectively leverage its relationship with County Governments with the aim of synergizing policy efforts to make the Northern Corridor a more efficient and cost effective trade route.