Policy Brief No. 05 of 2006 on Multiplicity of Taxes and Licenses in the Trucking Industry in Kenya: is there a Case for Deregulation?

Abstract

The trucking industry comprises of heavy commercial vehicles (lorries and trailers), which transport commercial products within the domestic market and on transit to the neighbouring countries within the region. The industry is mainly dominated by private investors (over 90% of the companies)1 and the majority are based at the port of,Jv:16mbasa. Although it is not easily possible to distill the regulatory measures specific to the sub-s.ector, as the government designs and implements policy frameworks for the entire road transport sector, the trucking industry in Kenya is considered overly regulated through multiplicity of taxes and license fees such as trade licenses from the Ministry of Trade and Industry; municipal license (Single Business Permit); space occupancy and parking levies;Transport Licensing Board (TLB) licence; and log-book for the registration of motor vehicles. Those involved in transit traffic must also have special transit goods licenses, which exclude the lorries and trailers from carrying local goods. There are several taxes and fees that, though applying to the entire road transport sector, directly affect the trucking business in Kenya...