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Consumption of milk goes down as VAT shoots up

20 September 2013, 14:01 Joseph Mukubwa

Nyeri - The consumption of milk has drastically reduced following the increase in milk prices.

Kenya Dairy Board Managing Director, Machira Gichohi, has said that a great number of milk consumers have started shunning the product.

He said most of the consumers cannot afford to pay KES 105 per litre compared to the KES 90 they used to pay before the 16 percent VAT.

Gichohi urged the government to exempt it from VAT since milk production has also been affected by the cold season.

"We have written to the Treasury for them to rescind on the decision since it has greatly affected our sector," said the MD.

He said that there could be a milk crisis in a few months since the processors will buy less milk from farmers.

Gichohi also warned those hawking milk that they will face the full force of the law, saying that milk sellers must have licenses from all the relevant authorities.

Hawking of milk has greately affected towns like Kiambu, Murang'a, Embu and Nyandarua among other urban towns.

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