Couriers object to new CCK tax regime

April 19, 2011

, NAIROBI, Kenya, Apr 19 – Local courier operators have once again raised their objection to the proposed tax regime by the Communications Commission of Kenya (CCK) accusing the regulator of reneging on an agreement they reached in 2006.

Courier Industry Association of Kenya Chairperson Jane Babsa-Nzibo says the proposed change will greatly affect some of the players in the industry.

"Following extensive consultations with the CCK that the licence fee would be 0.5 percent of gross revenue or a fixed fee, whichever is lower, the purposed change to whichever is higher will adversely affect some of the members of our association," she said.

Ms Babsa-Nzibo said the regulator should instead widen its net to rope in more operators in the sector.

"We have a lot of people who are actually now involved in logistics, storage, airfreight and a lot of other sectors, but doesn\’t fall in this category (courier)," she said.

CCK Director General Charles Njoroge challenged the sector to open up to various technological advancements.

"The resilience of the postal and courier sub-sector to the global tides is testimony to the potential of this sub-sector. The volumes of physical mail continues to rise in many regions of the globe despite increased competition emanating from electronic communication and economic slowdown experienced during the financial crisis in the recent past," said Mr Njoroge.

The CCK had commissioned a study to identify the gaps in the ICT sector and challenges facing service provision.

The study carried out with the Kenya National Bureau of Statistics will enable the commission to derive data that will form the bedrock for designing and building sustainable universal access programmes.

The results will provide policy makers with information on deficiencies in the service sector.

Postmaster General, Major General (rtd) Mohammed Hussein Ali said the Postal Corporation of Kenya is currently utilising the technology platform to deliver several e-products and services such as money transfer, utility payments on agency basis and letterbox rentals management systems.

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