The Kenyan government has made it practically impossible for nongovernment organizations (NGOs) working with the poor to seek exemption from the 25 percent duty for importing used computers.

The treasury has directed that any ministry that asks for a waiver of duty for imports by the NGOs must be prepared to pay the duty from their budgets. Technically, this can only be done if the import was factored into the previous year's budget.

For instance, if an NGO is seeking a waiver for computers meant for a rural hospital, the request should be forwarded by the Ministry of Health, and the ministry should be prepared to pay the requisite duty.

Previously the government had provisions for waiver of value added tax and other taxes for NGOs working with the poor in areas of water, agriculture, education, health and community development. The ministry of finance has scraped the provisions and directed that all NGOs must pay the duty or partner with relevant ministries, and then a proposal for waiver must be forwarded by the relevant ministry.

The NGOs and charitable organizations should enter into partnerships through specific agreements detailing areas of cooperation and taxable goods that will be used in the implementation, said a circular issued by Joseph Kinyua, permanent secretary in the Ministry of Finance.

The agreement has to be forwarded to the finance minister for approval before it can be signed. If approved and paid for, the computers are required to be registered jointly between the ministry and the NGO and any subsequent sale must be sanctioned by the government.

The move can take more than a year between the partnership agreement and final approval by the ministry of finance and release of goods by the Kenya Revenue Authority.

The move is counter-productive, since the government process is long and means that rural communities can not access technology because they can not afford new computers and the cost of maintenance, said Gladys Muhunyo, Computer Aid Africa program manager.

"The 25 percent tax goes against the government's commitment to ensure universal access by 2030," said Muhunyo.

The 25 percent duty was introduced in order to discourage importation of used computers and promote local innovation. Bitange Ndemo, permanent secretary in the Ministry of Information and Communication said that the government had invested in the locally produced Madaraka PC, which is designed to be affordable to local buyers.

The IDG News Service is a Network World affiliate.