The Agriculture and Food Authority has imposed a 2% levy on customs value for the importation of cereals and a 0.3% levy for its exportation.
- The Authority will also levy 2% on the customs value for the importation of legumes and pulses, with a 0.3% levy on its exports.
- Exports for roots and tubers will be charged a 1% levy on customs value, with imports retaining the 0.3% levy charged on other food crops.
- This notice was made pursuant to regulation 37 of The Crops (Food Crops) Regulations of 2019, and the Authority says it will be effective from July 1st this year.
The mentioned levy will be paid directly to the Authority’s agents at the nation’s point of entry or exit. The government argues that the levies imposed will enable small scale food growers to favorably compete against imported produce.
Since 2022, the government has rolled back taxes on food imports to slash the cost of essential products such as flour and rice. At the beginning of this year, Kenya imported food products such as wheat, rice, maize, and sugar worth KSh 22.4 billion from Uganda, South Africa, European countries, India, and the United States – according to a Statista report.
However, it is not clear why the Authority would impose the levy on exports. Crop exports are essential for ramping up Kenya’s forex reserve which is still recovering from last year’s shortfall. The aforementioned report states that exports at the beginning of this year stood at KSh 36 billion.
The Agriculture and Food Authority has been blamed for hampering reforms in the coffee sector and senators proposed its disbandment last year. They cited that the Crops Act, 2013, which sanctioned the Authority’s role, was being misused to frustrate small scale farmers.
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