The finding that Kenya's business community pays up to 16 different taxes, and spends a staggering 417 hours to make 41 tax payments is neither amusing nor attractive.

It tells a lot about our determination to be competitive in the region.

Indeed, Kenya has the highest tax rate in the region standing at 49.7 per cent.

Rwanda has the lowest at 31 per cent, Uganda 34 per cent and Tanzania 44 per cent.

In addition, the fact that Kenya's Value Added Tax (VAT) regime differs with Uganda and Tanzania in terms of treatment of refund and the lack of double taxation treaty is likely to cause more friction going forward with local businesses standing to lose to their regional counterparts. This issue should be addressed.

The finding by PricewaterhouseCoopers, an audit firm, and the World Bank is likely to vindicate the business community's cries that it has continued to render them uncompetitive.

The fact that the other members of EAC have more simplified tax regimes that have fewer tax charges makes Kenya uncompetitive.

The upshot of this is the loss of potential investment opportunities especially foreign direct investment as the other economies have more favourable tax regimes that make them more attractive.

In addition, Kenya needs to have a double taxation treaty with its partner states to allow for tax charging and payment at one point.

The current situation is expensive as Kenyan businesses operating in the region are taxed both at their regional operation and subsequently in Kenya when the profit is declared as part of the business operation.

Tanzania and Uganda have the double taxation regime in place hence giving their businesses leverage compared to their counterparts in Kenya.

On the issue of VAT refund Kenya based businesses have to contend with filing claims of refund.

Slow payments of the claims have resulted in a growing backlog over the years hence delayed payment further affecting business cash flow.

On the other hand, Tanzania and Uganda have a reverse VAT regime whereby businesses recover any refund claim before making their payment.

All the businesses need to do is make a book entry for purpose of compliance.

Kenya which had such a provision changed it in the guise of curbing fraudulent claims.

However, tax experts have queried the soundness of this decision indicating that it has only raised the cost of tax administration.

Moreover, the claims take long to process hence tying up business funds forcing them to resort to borrowing expensively from banks.

The need to harmonise the glaring difference is urgent as the commencement date for the common market treaty nears.

We cannot afford to waste an extra hour.