Ask any coach and He will tell you that when his fate depends on competitors’ match, the situation is out of control. So, it is with Kenya as our fate will be determined by Tanzania and other EAC Countries. The truth is, we are in a catch 22 situation. This is the time for Kenya to think outside the Box and redeem its flower and export sector.
Faced with the pressures of loss of foreign direct investment, loss of employment , capital movement and the threat that companies will relocate unless provided with concessions to cushion the EU tax regime such as more lax regulations and lower taxes, government must respond by promoting tax incentives to attract and retain investment capital.
Having limited economic options Kenya should move to tax competition as a central part of their sector development strategy to attract and retain the companies in the country.
Why?
A number of growers say the business is no longer a profitable undertaking under the current business cost regime. In case the EPA is not signed, this will require urgent measures to cushion producers against unhealthy competition from countries with less costly systems.