The Consumers Federation of Kenya (COFEK) is protesting against the new cargo and container inspection by the Kenya Plant and Health Inspectorate Service (KEPHIS).
This move has sparked concerns among various stakeholders about its potential impact on the cost of doing business and the overall cost of living in Kenya.
The new fees imposed by KEPHIS are likely to escalate the costs for businesses and individuals, ultimately advocating for an immediate reduction in these fees to alleviate the economic burden on the people of Kenya.
Historically, Kenya has been aiming to enhance its trade facilitation processes and reduce barriers to conducting business. Efficient and cost-effective logistics play a crucial role in achieving these goals.
However, the planned surge in container and cargo inspection fees by KEPHIS, from March 1, threatens to reverse these gains.
Previously, lower inspection costs attracted businesses to operate in Kenya, boosting economic growth and creating job opportunities. The sudden increase in fees raises concerns about the government’s commitment to maintaining a business-friendly environment.
If allowed, the move will strain businesses, especially small and medium enterprises (SMEs), which form the backbone of Kenya’s economy. These additional costs directly impact the competitiveness of local products in both domestic and international markets.
The increased inspection fees contribute to the overall cost of production, leading to higher prices for consumers. As a result, the cost of living for ordinary Kenyans is on the rise, making it challenging for many to meet their basic needs.
Looking ahead, the future implications of maintaining the high container and cargo inspection fees are concerning. If action is not taken to lower these fees promptly, the consequences could be dire.
Businesses may struggle to stay afloat, leading to closures and job losses. The ripple effect of reduced economic activities could further dampen Kenya’s growth prospects. Moreover, inflationary pressures resulting from increased production costs are likely to exacerbate the already challenging economic situation for Kenyan households.
Several compelling reasons necessitate the immediate reduction of container and cargo inspection fees by KEPHIS. Firstly, lowering these fees will promote a more conducive business environment, thereby attracting investments and fostering economic growth.
Secondly, reducing inspection costs will translate to lower production expenses for businesses, enabling them to offer competitive prices for goods and services.
This, in turn, will alleviate the burden on consumers and help contain the rising cost of living.
From an ethical standpoint, it is essential for regulatory bodies like KEPHIS to balance their revenue generation goals with the broader socio-economic impact of their actions.
The exorbitant inspection fees disproportionately affect vulnerable businesses and individuals, challenging their livelihoods.
By reevaluating and reducing these fees, KEPHIS would demonstrate its commitment to serving the best interests of the Kenyan people and fostering sustainable development.
